Opinion ID: 1998107
Heading Depth: 1
Heading Rank: 6

Heading: Are Negotiable Instruments

Text: The question now becomes whether they are negotiable instruments within the contemplation of article 3 of the Uniform Commercial Code. Since its enactment in 1963, Neb.U.C.C. § 3-104 (Reissue 1980) has provided in part: (1) Any writing to be a negotiable instrument within this article must (a) be signed by the maker or drawer; and (b) contain an unconditional promise or order to pay a sum certain in money and no other promise, order, obligation or power given by the maker or drawer except as authorized by this article; and (c) be payable on demand or at a definite time; and (d) be payable to order or to bearer. The warrants are in writing, are signed by the district as the maker, and are payable to order. See Neb.U.C.C. § 3-110 (Reissue 1980), which provides that an instrument is payable to order when by its terms it is payable to the order or assigns of any person therein specified with reasonable certainty. Thus, the requirements of § 3-104(1)(a) and (d) are clearly met. The requirement of § 3-104(1)(b) is likewise met. Neb.U.C.C. § 3-105 (Reissue 1980) has always provided in part: (1) A promise or order otherwise unconditional is not made conditional by the fact that the instrument ... (g) is limited to payment out of a particular fund or the proceeds of a particular source, if the instrument is issued by a government or governmental agency or unit. A sanitary and improvement district is such a governmental unit, as is contemplated by § 3-105(1)(g), under the provisions of Neb.Rev.Stat. § 31-705 (Reissue 1978), which has always stated that such a district shall be a body corporate and politic. See, also, Davis Management, Inc. v. Sanitary & Improvement Dist. No. 276, 204 Neb. 316, 282 N.W.2d 576 (1979); Hayes v. Sanitary & Improvement Dist. No. 194, 196 Neb. 653, 244 N.W.2d 505 (1976); Comment 6 to § 3-105. The requirement of § 3-104(1)(c) is met as well. Neb.U.C.C. § 3-108 (Reissue 1980) has, at all relevant times, provided: Instruments payable on demand include those payable at sight or on presentation and those in which no time for payment is stated. See, also, Erickson v. Newell, 183 Neb. 641, 163 N.W.2d 286 (1968), holding that a note which did not contain a due date was a demand note drawing interest until paid. We conclude, therefore, that the subject warrants are negotiable instruments.