If usad never drew upon the line of credit it would

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nonnegotiable. If USAD never drew upon the line of credit, it would have owed nothing when the agreement matured, and the principle would have been zero. Also, lacking an unconditional promise to pay a sum certain, the line of credit falls outside the definition of a negotiable instrument. 26.2 // Nationsbank of Virginia, NA v. Barnes Facts : Defendants, the Barnes, performed a note to Sovran Bank in the principle amount of $200,000. Under terms of the note, the plaintiff is entitled to collect all expenses. Eventually, NationsBank made demand on the 1991 note. Issue : Is the 1991 note a demand note? Holding : The note was still in dispute; therefore, summary judgment cannot be granted.
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Rule of Law : A standard of good faith must be applied before a demand for accelerated repayment can be made. A note is payable “on demand” if it says it is payable on demand or states no time for payment. The plaintiff is under no obligation to show good faith before requesting payment on the note. Defendants are liable, and the plaintiff is entitled to summary judgment on the issue of liability under the 1991 note. Problems 1.a) Negotiable – the maker promises to make the payee a stated sum of money b) Nonnegotiable – no stated monetary amount
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