Sec. 4. Determinable future time; what constitutes. - An instrument is payable at a determinable future time, within the meaning of this Act, which is expressed to be payable:
(a) At a fixed period after date or sight; or
(b) On or before a fixed or determinable future time specified therein; or
(c) On or at a fixed period after the occurrence of a specified event, which is certain to happen, though the time of happening be uncertain.
An instrument payable upon a contingency is not negotiable, and the happening of the event does not cure the defect.
“AFTER SIGHT”
After the drawee has seen the instrument upon presentment for acceptance
ACCELERATION NOTES
There are certain notes which contain acceleration provisions
Make it possible for the maker to pay the instrument at an earlier date or make it possible for the holder to require payment of the instrument at an earlier date
EXAMPLES OR ILLUSTRATIONS OF ACCELERATION NOTES
1. That contain acceleration clauses on the maker’s default in payment of installments or of interest, or on the happening of an extrinsic event
2. Or contain, in notes secured by collateral, a provision that the maker shall supply additional collateral in case of depreciation in the value of the original deposit, with the holder’s right to declare the note due immediately on failure to make good the depreciation
a. Non-negotiable—time for payment becomes uncertain and indefinite
b. It doesn’t render it non-negotiable—that from the standpoint of expediency as encouraging circulation and of business custom on account of their common acceptance by the commercial world, such clauses should be interpreted as not affecting negotiability
3. Or contain provisions for acceleration when holder deems himself insecure
a. It is rendered non-negotiable where it is payable at a fixed and future time, but with an option on the part of the holder to declare it due and demandable before maturity whenever he deems it insecure but to hold them non-negotiable is a spurious construction of the Act
b. It is rendered non-negotiable when the whole condition is lodged to the holder—middle ground is so long as the basis is dependent on factors not within the control of the holder, then it would still be negotiable
WORD USED IS AFTER
The word used in the law is “after” and not before
