400.3-106. Unconditional promise or order. - Missouri Statutes

Unconditional promise or order.

400.3-106. (a) Except as provided in this section, for thepurposes of Section 400.3-104(a), a promise or order isunconditional unless it states (i) an express condition topayment, (ii) that the promise or order is subject to or governedby another writing, or (iii) that rights or obligations withrespect to the promise or order are stated in another writing. Areference to another writing does not of itself make the promiseor order conditional.

(b) A promise or order is not made conditional (i) by areference to another writing for a statement of rights withrespect to collateral, prepayment, or acceleration, or (ii)because payment is limited to resort to a particular fund orsource.

(c) If a promise or order requires, as a condition topayment, a countersignature by a person whose specimen signatureappears on the promise or order, the condition does not make thepromise or order conditional for the purposes of Section400.3-104(a). If the person whose specimen signature appears onan instrument fails to countersign the instrument, the failure tocountersign is a defense to the obligation of the issuer, but thefailure does not prevent a transferee of the instrument frombecoming a holder of the instrument.

(d) If a promise or order at the time it is issued or firstcomes into possession of a holder contains a statement, requiredby applicable statutory or administrative law, to the effect thatthe rights of a holder or transferee are subject to claims ordefenses that the issuer could assert against the original payee,the promise or order is not thereby made conditional for thepurposes of Section 400.3-104(a); but if the promise or order isan instrument, there cannot be a holder in due course of theinstrument.

(L. 1992 S.B. 448)

*No continuity with § 400.3-106 as repealed by L. 1992 S.B. 448.