Section 8 Payable on Demand or at a Definite Time

• Library: Commercial Law 2007

A negotiable instrument must be payable on demand or at a definite time so that the fact of maturity at some time must be generally determinable from the face of the instrument. Section 400.3-104(a)(2), RSMo Supp. 2006; First Nat. Bank of Springfield v. Skeen, 14 S.W. 732 (Mo. 1890). Under UCC Article 3, a promise or order is payable on demand if it:

• states expressly that it is payable on demand or at sight

• otherwise indicates that it is payable at the will of the holder; or

• does not state any time of payment

Section 400.3-108(a), RSMo 2000. See:

• Hemar Ins. Corp. of Am. v. Ryerson, 108 S.W.3d 90 (Mo. App. E.D. 2003) (a promissory note was not payable on demand when it specified only that the maker “will make consecutive monthly payments in the amounts and on the payment due dates shown on my monthly statements until [makers] have paid all of the principal and interest and other charges [makers] may owe under the promissory note”)

• Collins v. Trotter, 81 Mo. 275 (1883) (a promissory note made payable on the “first day of March,” without mentioning the year, was payable on demand because it did not state any time of payment)

If no time for payment is specified, a negotiable instrument is presumed to be payable on demand. See Furstenfeld v. Furstenfeld, 131 S.W. 359 (Mo. App. E.D. 1910) (when the time is left blank in a note, and no time is specified as to when it shall mature, it becomes due only on demand).

Unlike the pre-1992...