Page:United States Statutes at Large Volume 47 Part 1.djvu/1332

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1308 72d CONG RESS . SESS . IL CH. 128. F EBRUARY 27, 1933 . (3) By stated installments, with a provision that upon default in payment of any installment or of interest, the whole shall become due; or (4) With exchange, whether at a fixed rate or at the cu rrent rate ; or (5) With costs of collection or an attorney's fee, in case payment shall not be made at maturity . LUnconditional prom- SEC. 1402 . UNQUAL IFIED PROMISE UNCONDITIONAL .-An unqu alifie d order or pr omise to pay is uncond ition al wi thin the me aning of chapters 66 to 69 of this code, though coupled with- (1) An indication of a particular fund out of which reimburse- ment is to be made, or a particular account to be debited with the amount ; or (2) 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 . Time for payment . SEC. 1403 . TIME FOR PAYMENT . - An instrument is payable at a determinable, future time, within the meaning of chapters 66 to 69 of this code, which is expressed to be payable- (1) At a fixed period after date or sight ; or (2) On or before a fixed or determinable future time specified therein ; or (3) On or at a fixed period after the occurrence of a specified ev ent, whi ch is ce rtain to happen, though the time of happ ening be uncertain . An instrument payable upon a contingency is not negotiable, and the happening of th e event does not cure the defect . Non neg oti abl e in- SEC . 1404 . NONNEGOTIABLE INSTRUMENT .-An , instrument which strument,

contains an order or promise to do any act us addition to the pay- Exceptions . men t of money - is not negotiable. But the negotiable character of an instrument otherwise negotiable is not affected by a provision which - (1) Authorizes the sale of collateral securities in case the instru- ment be not paid at maturity ; or (2) Authorizes a confession of judgment, if the instrument be not paid at maturity ; o r (3 ) Waives the ben efit of any law intended for the advanta ge or protection of th e obligor ; o r (4) 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 stipu- lation otherwise illegal . fec otiability not af- SEC . 1405. NEGOTIABILITY NOT AFFECTED .-The validity and negoti- abl e character of a n instrument are not affected by the fact that- (1)Itisnotdated;or (2) Does not specify the value given, or that any value has been given therefor ; or (3) Does not specify the place where it is drawn or the place where it is payable ; or (4) Bears a seal ; or (5) Designa tes a pa rticular kind of current money i n which pay- ment is to be made . But nothing in this section shall alter or repeal any statute requir in (r in certain cases the nature of the consideration to be stated in the instrument.