Alvin signs a promissory note payable to the order of Borrow & Spend Loan Company. The note states that it is payable "with interest at the legal rate." This note is
A) not necessarily nonnegotiable .
B) nonnegotiable, because it does not specify a rate of interest.
C) nonnegotiable, because it is a promissory note.
D) nonnegotiable, because it is payable only with interest.

Question

Quizplus · Accepted Answer

The note is not necessarily nonnegotiable because it can still be considered negotiable if the legal rate of interest is determinable by a standard reference, such as a statute.

Alvin Signs a Promissory Note Payable to the Order of Borrow