Javon signed a 90-day note promising to pay $1,000 plus interest.The note states interest is to be based on a variable published rate external to the note.The sum the borrower must repay is uncertain;therefore,under Revised Article 3,the note is not negotiable.

Question

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Under Revised Article 3, a note can still be negotiable even if the sum to be paid is uncertain, as long as the note contains an unconditional promise to pay a fixed amount of money, with or without interest or other charges described in the promise, and the interest can be determined by a reference to an external factor.

Javon Signed a 90-Day Note Promising to Pay $1,000 Plus