§ 6A-3-106 - Unconditional promise or order. - Rhode Island Statutes

SECTION 6A-3-106

   § 6A-3-106  Unconditional promise or order.– (a) Except as provided in this section, for the purposes of § 6A-3-104(a),a promise or order is unconditional unless it states (i) an express conditionto payment, (ii) that the promise or order is subject to or governed by anotherwriting, or (iii) that rights or obligations with respect to the promise ororder are stated in another writing. A reference to another writing does not ofitself make the promise or order conditional.

   (b) A promise or order is not made conditional (i) by areference to another writing for a statement of rights with respect tocollateral, prepayment, or acceleration, or (ii) because payment is limited toresort to a particular fund or source.

   (c) If a promise or order requires, as a condition topayment, a countersignature by a person whose specimen signature appears on thepromise or order, the condition does not make the promise or order conditionalfor the purposes of § 6A-3-104(a). If the person whose specimen signatureappears on an instrument fails to countersign the instrument, the failure tocountersign is a defense to the obligation of the issuer, but the failure doesnot prevent a transferee of the instrument from becoming a holder of theinstrument.

   (d) If a promise or order at the time it is issued or firstcomes into possession of a holder contains a statement, required by applicablestatutory or administrative law, to the effect that the rights of a holder ortransferee are subject to claims or defenses that the issuer could assertagainst the original payee, the promise or order is not thereby madeconditional for the purposes of § 6A-3-104(a); but if the promise or orderis an instrument, there cannot be a holder in due course of the instrument.