The Montgomery advertiser., 1909-09-16
No. ffs) AN ACT tS. e2. To define and regulate negotiable in-
 struments.
Form And Interpretation.

struments.
 Form And Interpretation.
 Section 1. Be 1t enacted by the Legislature of Alabama, That an in- strument to be negotiable must con form to the following requirements: 1. It must be in writing and signed by the maker or drawer.
 z It must contain an unconditional promise or order to pay sum certain in money.
 s. Must be payable on demand or at a fixed or determinable future time. {. Must be payable to order or 10 Where the instrument is ad- dressed to a drawee, he must be named or otherwise indicated therein with reasonable certainty.
 sec. 2. The sum payable is sum certain within the meaning of this Act. although it Is to be paid:
 1. With interest; or,
 2 By stated installments.
 g. By stated installments. with provision that upon default in pay ment of any installment, or of interest, the whole shall come due; or
 |. With exchange, whether at fixed rate or at the current rate; or s. With cost of collection or an at torney's fee, in case payment shall not be made at maturity. e. nror,ise to pay is unconditional within the meaning of this Act. though coupled with: i. An indication of a particular fund out of which reimbursement is to be made or a particular account 10 pc debited with the amount or a A statement of the transaetioh which gives rise to the instrument But an order or promise to pay out of A particular fund is not unconoI- tional.
 Sec. (. An instrument Is payable at d determinable future time, within the meaning of this Act. wnlch IS e~- pressed to be payable:
 i. At a fixed period after date or sight; or
 a. On or before a fixed or determin- able future time specified therein; or 8. On or at a fixed period after the occurrence of a specified event, which Is certain to happen. though the time of happening be uncertain.
 An instrument payable upon contin- gency Is not negotiable. and the hap pening of the> event does not cure the defect.
 Sec. s. An instrument which con- tains an order or promise to do an act in addition to tine payment Of money is not negotiable. But the negotiable character of an investment otherwise
  vision which:
 i. Authorize. tae sale of collateral securities in case the instrument be not paid at maturity; or
 2. Authorize a confession of 1udg- ment If the instrument be not paid at maturity; or
 8. Valves the benefit of any law intended for the advantage or protec- tion of the oblisator: or
 4 Give the holder an election to re- quire something to be done in lieu Of payment of money.
 But nothing in this section shall validate any provision or stipulation otherwise illegal.
 Sec. 6. The validity and negotiable character of an instrumeM are not af- fected by the fact that:
 l. It Is not dated: or
 g. Does not specify the value given. or that any value has been given there tor; or
 8. Docs not specify the place where it is drawn or the place where 1t is payable; or
 (. Bears a seal; or s. Designates particular kind of current money in which payment IS to be made.
 But nothing in this section shall alter or repeal any statute requiring in certain cases the nature of the con sideration to be stated in the tnstru- ment.
 See. '. An instrument is payable on demand:
 1. Where it is expressed to be pay able on demand or at sight, or on pre- sentation; or
 2. In which no time for payment is expressed
 8. Where an instrument Is issued, accepted or indorsed when overdue, 1t t. iA0uinR accepting or indorsing H. payable on demand.
 Sec. 8. The instrument Is payable to order where 1t is drawn payable to the order of a specified person or to him or his order. It may be drawn payable to the order of;
 1. A payee who is not a maker drawer or drawee; or
 ?. The drawer or maker; or
 3. The drawee; or
 A Two or more payees jointly; or
 s. One or some of several payees; or
 G. The holder of an office for the time being.
 order, the payee must be named or otherwise indicated therein with reasonable certainty.
 Sec. 9. The instrument is payable to bearer:
 l. When 1t is expressed to be Sc payable; or
 ,. When it is payable to a person named therein or bearer; or
 3. When it Is payable to the order of a fictitious or existing person and such fact was known to the per son making 1t so payable; or
 1. When the name of the payee doe; not purport to be the name of any person; or
 5. When the only or last indorse. ment Is an indorsement In blank
 Sec. 10. The negotiable instrument need not follow the language of thii Act, but any terms are sufficient which clearly indicate an intention tc conform to the requirements thereof
 Sec. II. When the instrument or an acceptance of any indorsement thereon is dated. such date is dvemed prims facie to be the true date of the mak- ing, drawing, acceptance or indorse- ment as the case may be.
 Sec. 12. The instrument is not in- valid for the reason only that 1t Is ante-dated or post-dated. provided this is not done for an illegal or fraudu- lent purpose. The person to whom an instrument so dated Is delivered acquires the title thereto as of the date N of delivery.
 Sec. IS. When an instrument ex- pressed to be payable at fixed period after date Is issued undated, or where the acceptance of an instrument at a fixed period after sight is undated, any holder may insert therein the true date of issue or acceptance, and the lnstru- ment shall be payable accordingly The insertion of a wrong date does not avoid the instrument in the hands of subseuuent holder in due cOurse