MS 1990 [Repealed, 1992 c 565 s 114
336.3-106 UNCONDITIONAL PROMISE OR ORDER.
(a) Except as provided in this section, for the purposes of section
, a promise or
order is unconditional unless it states (i) an express condition to payment, (ii) that the promise or
order is subject to or governed by another record, or (iii) that rights or obligations with respect
to the promise or order are stated in another record. A reference to another record does not of
itself make the promise or order conditional.
(b) A promise or order is not made conditional (i) by a reference to another record for a
statement of rights with respect to collateral, prepayment, or acceleration, or (ii) because payment
is limited to resort to a particular fund or source.
(c) If a promise or order requires, as a condition to payment, a countersignature by a person
whose specimen signature appears on the promise or order, the condition does not make the
promise or order conditional for the purposes of section
. If the person whose
specimen signature appears on an instrument fails to countersign the instrument, the failure to
countersign is a defense to the obligation of the issuer, but the failure does not prevent a transferee
of the instrument from becoming a holder of the instrument.
(d) If a promise or order at the time it is issued or first comes into possession of a holder
contains a statement, required by applicable statutory or administrative law, to the effect that
the rights of a holder or transferee are subject to claims or defenses that the issuer could assert
against the original payee, the promise or order is not thereby made conditional for the purposes
; but if the promise or order is an instrument, there cannot be a holder in
due course of the instrument.
History: 1992 c 565 s 8; 2003 c 81 art 1 s 2