Promissary note from being negotiable


Problem: Under the commercial paper article of the ucc, which of the following circumstances would prevent a promissory note from being negotiable:

1) an extension clause that allows the maker to elect to extend the time for payment to a date specified in the note

2) an acceleration clause that allows the holder to move up the maturity date of the note in the event of default

3) a person having a power of attorney signs the note on behalf of the maker

4) a clause that allows the maker to satisfy the note b the performance of services or the payment of money

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Accounting Basics: Promissary note from being negotiable
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