payable on demand
A promissory note that is payable on demand is payable at the will of the holder. A promissory note without a specified time of payment, according to N. Bank v. Pefferoni Pizza Co. , may also be considered payable on demand.
The note is payable at the will of the holder because the note is due soon after it is executed and delivered . The exact due date depends on the jurisdiction. In Nebraska, for instance, a court in Solar Motors, Inc. v. First Nat. Bank of Chadron found that a note payable on demand is due the day after it is executed and delivered. In Alabama, on the other hand, a court in Esslinger v. Spragins found that the note is due immediately after delivery.
[Last reviewed in July of 2020 by the Wex Definitions Team ]
Wex