Examples of sum to be paid with interest 1 interest

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Examples of Sum to be paid with interest 1. Interest at fixed rate: I promise to pay Pioloor order P10,000.00, with interest at 15% per annum. 2. Interest at increased or reduced rate: I promise to pay Piolo or order P10,000.00 with interest at 18% per annum from date until paid; 15% if paid when due. 3. Accrual/rate of interest not specified: If no date from which interest is to run –computed from the date of the instrument; if no date in the instrument – computed from the issue. If rate is not specified – the legal rate is6% (Article 2209, civil code, now 12%) 4. Interest usurious - can still be negotiated, the contract remains valid as to the principal only. What is the meaning of “stated installments”? Stated installments mean that: a. The interest of each installments, and b. The due date of each installment must be fixed in the instrument. Example: I promise to pay Piolo or order the sum of P1,000.00 in two installments as follows: P500.00, on or before November 1, 2004 and P500.00, on or before December 1, 2004.
Law on Negotiable Instruments Hector de Leon What are the different forms of stated installments?
What does “with exchange means?
When is a promise or order
unconditional? An unqualified order or promise to pay is unconditional if:
2. It has the ability to circulate freely from one person to another When promissory note contains a promise to pay? There is an unconditional promise to pay: 1. Implied promise to pay
3. Use of words of negotiability When bill of exchange contains an order to pay?
Law on Negotiable Instruments Hector de Leon When does an instrument becomes payable at a determinable future time? Section 4 of NIL: An instrument is payable at a determinable future time which is expressed to be payable: a) At a fixed period after date or sight, 1. I promise to pay P or order the sum of P1,000.00 on September 1, 2000 2. Sixty days after date, I promise to pay P or order the sum of P1,000.00.

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