Page:United States Statutes at Large Volume 77.djvu/706

 674

PUBLIC LAW 88-243-DEC. 30, 1963

[77

STAT.

(2) A writing whioli complies with the requirements of this section is (a) a "draft" ("bill of exchange") if it is an order; (b) a "check" if it is a draft drawn on a bank and payable on demand; (c) a "certificate of deposit" if it is an acknowledgment by a bank of receipt of money with an engagement to repay it; (d) a "note" if it is a promise other than a certificate of deposit. (3) As used in other articles of this subtitle, and as the context may require, the terms "draft", "check", "certificate of deposit" and "note" may refer to instruments which are not negotiable within this article as well as to instruments which are so negotiable. §28:3—105. When promise or order unconditional (1) A promise or order otherwise unconditional is not made conditional by the fact that the instrument (a^ is subject to implied or constructive conditions; or (b) states its consideration, whether performed or promised, or the transaction which gave rise to the instrument, or that the promise or order is made or the instrmnent matures in accordance with or "as per" such transaction; or (c) refers to or states that it arises out of a separate agreement or refers to a separate agreement for rights as to prepayment or acceleration; or (d) states that it is drawn under a letter of credit; or (e) states that it is secured, whether by mortgage, reservation of title or otherwise; or (f) indicates a particular account to be debited or any other fund or source from which reimbursement is expected; or (g) is limited to payment out of a particular fund or the proceeds of a particular source, if the instrument is issued by a government or governmental agency or unit; or, (h) is limited to payment out of the entire assets of a partnership, unincorporated association, trust or estate by or on behalf of which the instrument is issued. (2) A promise or order is not unconditional if the instrument (a) states that it is subject to or governed by any other agreement; or (b) states that it is to he paid only out of a particular fund or source except as provided in this section. §28:3—106. Sum certain (1) The sum payable is a sum certain even though it is to be paid (a) with stated interest or by stated installments; or (b) with stated different rates of interest before and after default or a specified date; or (c) with a stated discount or addition if paid before or after the date fixed for payment; or (d) with exchange or less exchange, whether at a fixed rate or at the current rate; or (e) with costs of collection or an attorney's fee or both upon default. (2) Nothing in this section shall validate any term which is otherwise illegal. §28:3—107. Money (1) An instrument is payable in money if the medium of exchange in which it is payable is money at the time the instrument is made. An instrument payable in "currency" or "current funds" is payable in money.

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