ACT NO.

2031 (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
February 03, 1911
(b) A statement of the transaction which gives rise to the instrument.
THE NEGOTIABLE INSTRUMENTS LAW
But an order or promise to pay out of a particular fund is not unconditional.
I. FORM AND INTERPRETATION
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:
Section 1. Form of negotiable instruments. - An instrument to be negotiable must conform to
the following requirements:
(a) At a fixed period after date or sight; or
(a) It must be in writing and signed by the maker or drawer;
(b) On or before a fixed or determinable future time specified therein; or
(b) Must contain an unconditional promise or order to pay a sum certain in money;
(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.
(c) Must be payable on demand, or at a fixed or determinable future time;
An instrument payable upon a contingency is not negotiable, and the happening of the event
(d) Must be payable to order or to bearer; and
does not cure the defect.
(e) Where the instrument is addressed to a drawee, he must be named or otherwise indicated
Sec. 5. Additional provisions not affecting negotiability. - An instrument which contains an
therein with reasonable certainty.
order or promise to do any act in 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:
Sec. 2. What constitutes certainty as to sum. - The sum payable is a sum certain within the
meaning of this Act, although it is to be paid:
(a) authorizes the sale of collateral securities in case the instrument be not paid at maturity; or
(a) with interest; or
(b) authorizes a confession of judgment if the instrument be not paid at maturity; or
(b) by stated installments; or
(c) waives the benefit of any law intended for the advantage or protection of the obligor; or
(c) by stated installments, with a provision that, upon default in payment of any installment or
(d) gives the holder an election to require something to be done in lieu of payment of money.
of interest, the whole shall become due; or
But nothing in this section shall validate any provision or stipulation otherwise illegal.
(d) with exchange, whether at a fixed rate or at the current rate; or
Sec. 6. Omissions; seal; particular money. - The validity and negotiable character of an
(e) with costs of collection or an attorney's fee, in case payment shall not be made at maturity.
instrument are not affected by the fact that:
Sec. 3. When promise is unconditional. - An unqualified order or promise to pay is
(a) it is not dated; or
unconditional within the meaning of this Act though coupled with:
(b) does not specify the value given, or that any value had been given therefor; or Sec. 9. When payable to bearer. - The instrument is payable to
bearer:
(c) does not specify the place where it is drawn or the place where it is payable; or
(a) When it is expressed to be so payable; or
(d) bears a seal; or
(b) When it is payable to a person named therein or bearer; or
(e) designates a particular kind of current money in which payment is to be made.
(c) When it is payable to the order of a fictitious or non-existing person, and such fact was
But nothing in this section shall alter or repeal any statute requiring in certain cases the nature known to the person making it so payable; or
of the consideration to be stated in the instrument.
(d) When the name of the payee does not purport to be the name of any
Sec. 7. When payable on demand. - An instrument is payable on person; or
demand:
(e) When the only or last indorsement is an indorsement in blank.
(a) When it is so 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. 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.