on demand

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A promissory note that is payable on demand is one where payment is due upon request of the person or company to whom the funds are owed (the holder). Section 3-108 of the UCC states that a “promise or order is ‘payable on demand’ if it (i) states that it is payable on demand or at sight, or otherwise indicates that it is payable at the will of the holder, or (ii) does not state any time of payment.”

[Last updated in July of 2020 by the Wex Definitions Team]