Michigan Laws 440.3108 – Instrument payable on demand, at definite time, or at fixed date
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(1) A promise or order is “payable on demand” if it:
(a) States that it is payable on demand or at sight, or otherwise indicates that it is payable at the will of the holder.
Terms Used In Michigan Laws 440.3108
- Acceptor: means a drawee who has accepted a draft. See Michigan Laws 440.3103
- Holder: means any of the following:
(i) A person in possession of a negotiable instrument that is payable either to bearer or to an identified person that is the person in possession. See Michigan Laws 440.1201Maker: means a person who signs or is identified in a note as a person undertaking to pay. See Michigan Laws 440.3103 Order: means a written instruction to pay money signed by the person giving the instruction. See Michigan Laws 440.3103 Promise: means a written undertaking to pay money signed by the person undertaking to pay. See Michigan Laws 440.3103 State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Michigan Laws 440.1201
(b) Does not state any time of payment.
(2) A promise or order is “payable at a definite time” if it is payable on elapse of a definite period of time after sight or acceptance or at a fixed date or dates or at a time or times readily ascertainable at the time the promise or order is issued, subject to rights of:
(a) Prepayment.
(b) Acceleration.
(c) Extension at the option of the holder.
(d) Extension to a further definite time at the option of the maker or acceptor or automatically upon or after a specified act or event.
(3) If an instrument, payable at a fixed date, is also payable upon demand made before the fixed date, the instrument is payable on demand until the fixed date and, if demand for payment is not made before that date, becomes payable at a definite time on the fixed date.