Consumer Loans LLC signs an instrument payable to the order of Diana that states, "The maker of this note at the date of maturity, April 1, 2019, can extend the time of payment, but for no more than a reasonable time." This instrument is

Question

​Consumer Loans LLC signs an instrument payable to the order of Diana that states, "The maker of this note at the date of maturity, April 1, 2019, can extend the time of payment, but for no more than a reasonable time." This instrument is

Quizplus · Accepted Answer

The instrument is nonnegotiable because it is not payable within a definite time. The provision for an extension of time of payment makes the date of maturity uncertain, making it impossible for a holder of the instrument to know when payment is due. Therefore, it does not meet the requirement of negotiability under the Uniform Commercial Code.

​Consumer Loans LLC Signs an Instrument Payable to the Order

Consumer Loans LLC Signs an Instrument Payable to the Order