SECTION 1. (Period) Form of negotiable instrument.

(Period) — (Em Dash) An instrument to be

negotiable must conform to the following requirements: (Colon)

(Open Parentheses) (a) (Close Parentheses) It must be in writing and signed by the maker or
drawer; (Semicolon)

(Open Parentheses) (b) (Close Parentheses) Must contain an unconditional promise or order to
pay a sum certain in money; (Semicolon)

(Open Parentheses) (c) (Close Parentheses) Must be payable on demand, (Comma) or at a

fixed or determinable future time; (Semicolon)

(Open Parentheses) (d) (Close Parentheses) Must be payable to order or to bearer;

(Semicolon) and

(Open Parentheses) (e) (Close Parentheses) Where the instrument is addressed to a drawee,
(Comma) he must be named or otherwise indicated therein with reasonable certainty. (Period)

SEC. 10. Terms, when sufficient.—The instrument need not follow the language of this Act, but
any terms are sufficient which clearly indicate an intention to conform to the requirements
hereof.

SEC. 2. Certainly as to sum ; what constitutes.—The sum payable sum is a sum certain within
the meaning of this Act, although it is to be paid—
(a) With interest; or
(b) By stated installments^ or
(c) By stated installments, with a provision that upon default in payment of any installment or of
interest the whole shall become due; or
(d) With exchange, whether at a fixed rate or at the current rate; or
(e) With costs of collection or an attorney's fee, in case payment shall not be made at maturity.

SEC. 9. When payable to bearer.—The instrument is payable to bearer—

(a) When it is expressed to be so payable; or
(b) When it is payable to a person named therein or bearer; or (c) When it is payable to the
order of a fictitious or person, and such fact was known to the person making it so payable; or
(d) When the name of the payee does not purport to be the name of any person; or
(e) When the only or last indorsement is an indorsement in blank, sufficient terms.

SEC. 3. When promise is unconditional.—An unqualified order or promise to pay is

unconditional within the meaning of this Act, though coupled with—
(a) An indication of a particular fund out of which reimbursement is to be made, or a particular
account to be debited with the amount; or
(b) A statement of the transaction which gives rise to the instrument.
But an order or promise to pay out of a particular fund is not unconditional.

SEC. 8. When payable to order.—The instrument is payable to order where it is drawn payable
to the order of a specified person or to him or his order. It may be drawn payable to the order
of—
(a) A payee who is not maker, drawer, or drawee; or
(b) The drawer or maker; or
(c) The drawee; or
(d) Two or more payees jointly; or
(e) One or some of several payees; or
(f) The holder of an office for the time being.
Where the instrument is payable to order the payee must be named or otherwise indicated
therein with reasonable certainty.

SEC. 4. Determinable future time; what constitutes.—An instrument is payable at a

determinable future time, within the meaning of this Act, which is expressed to be payable—
(a) At a fixed period after date or sight; or
(b) On or before a fixed or determinable future time specified therein; or
(c) On or at a fixed period after the occurrence of a specified event, which is certain to happen,
though the time of happening be uncertain.
An instrument payable upon a contingency is not negotiable, and the happening of the event
does not cure the defect.
SEC. 7. When payable on demand.—An instrument is payable on demand—
(a) Where it is expressed to be payable on demand, or at sight, or on presentation; or
(b) In which no time for payment is expressed.
Where an instrument is issued, accepted, or indorsed when overdue, it is, as regards the person
so issuing, accepting, or indorsing it, payable on demand.

SEC. 5. Additional provisions not affecting negotiability.—An instrument which contains an

order or promise to do any act in f addition to the payment of money is not negotiable. But the
negotiable character of an instrument otherwise negotiable is not affected by a provision which
—
(a) Authorizes the sale of collateral securities in case the instrument be not paid at maturity; or
(b) Authorizes a confession of judgment if the instrument be not paid at maturity; or
(c) Waives the benefit of any law intended for the advantage or protection of the obligor; or
(d) Gives the holder an election to require something to be done in lieu of payment of money.
But nothing in this section shall validate any provision or stipulation otherwise illegal.

SEC. 6. Omissions; seal; particular money.—The validity and negotiable character of an

instrument are not affected by the fact that—
(a) It is not dated; or
(b) Does not specify the value given, or that any value has been given therefor; or
(c) Does not specify the place where it is drawn or the place where it is payable; or
(d) Bears a seal; or
(e) Designates a particular kind of current money in which payment is to be made.
But nothing in this section shall alter or repeal any statute requiring in certain cases the nature
of the consideration to be stated in the instrument.
SEC. 2: Certainly as to Sum; What Constitutes
Key Concept: The sum payable is considered "certain" (fixed) even if certain conditions are
attached.
 Implication: An amount is still valid as negotiable even if it involves interest, installment
payments, penalties for default, exchange rates, or collection costs.

SEC. 3: When Promise Is Unconditional

Key Concept: A promise to pay is considered unconditional even if it's linked to a fund or a
transaction, as long as it doesn’t specify payment out of a particular fund.
 Implication: If a promise specifies a source of payment, it could invalidate the promise
as unconditional (and thus negotiable). However, mentioning the fund does not make it
conditional unless explicitly stated.

SEC. 4: Determinable Future Time; What Constitutes

Key Concept: A negotiable instrument can be payable at a future time as long as that time is
determinable.
 Implication: The time for payment must be clear and calculable, such as being a set
number of days after a certain date or event. If it depends on an uncertain event, it’s not
negotiable.

SEC. 5: Additional Provisions Not Affecting Negotiability

Key Concept: Certain clauses (e.g., sale of collateral, confession of judgment, waivers) do not
affect the negotiability of an instrument as long as they don't make it illegal.
 Implication: You can add other provisions (like collateral or penalties) to an instrument
without affecting its negotiability, unless the clauses are illegal.

SEC. 6: Omissions; Seal; Particular Money

Key Concept: The validity of an instrument is not affected by some common omissions (e.g.,
date, place, seal, or specific money type).
 Implication: Missing details, like the date or seal, or not specifying the currency type, do
not invalidate an instrument, as long as the essential elements are clear. However,
certain statutes may still require details (like consideration) to be stated.
SEC. 7: When Payable on Demand
Key Concept: An instrument is payable on demand if it explicitly states "on demand," "at sight,"
or has no specific time stated.
 Implication: If no time for payment is specified, the instrument is due immediately. If it is
overdue and then accepted or endorsed, it becomes payable on demand.

SEC. 8: When Payable to Order

Key Concept: An instrument is payable to order if it is made out to the order of a specific
person (or their order).
 Implication: The payee must be clearly indicated, whether it’s a person, group, or even
a role (e.g., "to the order of the holder of this office").

SEC. 9: When Payable to Bearer

Key Concept: An instrument is payable to bearer if it can be transferred by delivery, without
needing a specific payee.
 Implication: A bearer instrument can be transferred easily, and whoever holds it can
claim the payment (e.g., a blank endorsement or "pay to bearer" language makes it
transferable).

SEC. 10: Terms, When Sufficient

Key Concept: The exact wording of an instrument doesn't need to follow the law's exact
phrasing, as long as it clearly shows the intention to meet legal requirements.
 Implication: As long as the instrument is clear in its intent and meets the required
terms, it doesn't need to use the exact legal language, offering some flexibility.