Sec. 42a-3-112. Interest. - Connecticut Statutes

      Sec. 42a-3-112. Interest. (a) Unless otherwise provided in the instrument, (i) an instrument is not payable with interest, and (ii) interest on an interest-bearing instrument is payable from the date of the instrument.

      (b) Interest may be stated in an instrument as a fixed or variable amount of money or it may be expressed as a fixed or variable rate or rates. The amount or rate of interest may be stated or described in the instrument in any manner and may require reference to information not contained in the instrument. If an instrument provides for interest, but the amount of interest payable cannot be ascertained from the description, interest is payable at the judgment rate in effect at the place of payment of the instrument and at the time interest first accrues.

      (1959, P.A. 133, S. 3-112; 1963, P.A. 526, S. 4; P.A. 91-304, S. 12.)

      History: 1963 act reworded Subsec. (1)(b) for clarity; P.A. 91-304 entirely replaced former provisions re terms and omissions not affecting the negotiability of an instrument with provisions re interest.

      See Secs. 42a-3-104(a)(3) and 42a-3-311 for successor provisions to Sec. 42a-3-112(1), revised to 1991, re terms and conditions not affecting negotiability.

      Annotations to former statute (1958 Rev., S. 39-6):

      Provisions to pay taxes and assessments and to insure property in addition to paying the principal renders a note nonnegotiable. 4 CS 211. Provision for the furnishing of additional security does not render negotiable note nonnegotiable. 10 CS 180.

      Cited. 149 C. 159.

      Annotations to present section:

      Cited. 149 C. 159.

      Former Subsec. (1):

      Subdiv. (f) cited. 202 C. 277.