Sec. 42a-3-108. Payable on demand or at definite time. - Connecticut Statutes

      Sec. 42a-3-108. Payable on demand or at definite time. (a) A promise or order is "payable on demand" if it (i) states that it is payable on demand or at sight, or otherwise indicates that it is payable at the will of the holder, or (ii) does not state any time of payment.

      (b) 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 (i) prepayment, (ii) acceleration, (iii) extension at the option of the holder, or (iv) extension to a further definite time at the option of the maker or acceptor or automatically upon or after a specified act or event.

      (c) 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.

      (1959, P.A. 133, S. 3-108; P.A. 91-304, S. 8.)

      History: P.A. 91-304 designated former provisions as Subsec. (a) and amended said Subsec. to replace "Instruments" with "A promise or order" and revise provisions re when a promise or order is payable on demand, added Subsec. (b) re when a promise or order is payable at a definite time, a restatement of Sec. 42a-3-109(1), revised to 1991, and added Subsec. (c) re an instrument payable at a fixed date and upon demand before said date.

      Annotations to former statute (1958 Rev., S. 39-8):

      If no time is stated, note is due on demand. 1 C. 405; 10 C. 485. Provision for semiannual interest discussed. 71 C. 39. Under former statute, demand note overdue after four months. 75 C. 431. Agreement that loan represented by note shall be a continuing one held valid. 78 C. 319. In re provision that note be "payable on demand after date" and is to bear interest. 84 C. 55. Has no application to any writing not a negotiable instrument. 101 C. 168; 105 C. 639.