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Can you summarize NHRS 382-A:3-106?
UNIFORM COMMERCIAL CODE > Unconditional Promise or Order.
Short Summary
This legal document, part of the New Hampshire Revised Statutes, specifically the Uniform Commercial Code (Chapter 382-A), discusses the conditions for an unconditional promise or order in commercial transactions. It states that a promise or order is considered unconditional unless it includes an express condition to payment, is subject to or governed by another writing, or if rights or obligations are stated in another writing. The document clarifies that a reference to another writing does not automatically make the promise or order conditional. It also explains that a promise or order is not made conditional by referencing another writing for statements related to collateral, prepayment, acceleration, or limited payment sources. Additionally, the document addresses the requirement of a countersignature by a person whose specimen signature appears on the instrument, stating that it does not make the promise or order conditional. However, failure to countersign the instrument can be a defense to the obligation of the issuer. Finally, the document mentions that if a promise or order contains a statement, required by applicable statutory or administrative law, regarding claims or defenses that the issuer could assert against the original payee, it does not make the promise or order conditional. However, if the promise or order is an instrument, there cannot be a holder in due course of the instrument.
Whom does it apply to?
Parties involved in commercial transactions
What does it govern?
Unconditional promises or orders in commercial transactions
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire