Maria signs an instrument payable to the order of National Loans, Inc., "on or before" June 15. This instrument is
A) negotiable.
B) nonnegotiable, because the maker can move up the payment date.
C) nonnegotiable, because moving up the payment date is optional.
D) nonnegotiable, because the exact payment date cannot be deter?mined from the face of the instrument.

Question

Quizplus · Accepted Answer

The instrument is negotiable because it meets all the requirements of negotiability, such as being payable to order, having a fixed amount, and being unconditional except for the "on or before" date. Even though the payment date is not a fixed date, it is still a determinable one and does not affect the negotiability of the instrument.

Maria Signs an Instrument Payable to the Order of National