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Section 5. Additional provisions not affecting negotiability - Negotiable Instruments Law

Section 5. Additional provisions not affecting negotiability of Negotiable Instruments Law. Section 5. Additional provisions not affecting negotiability.-An instrument which contains an order or promise to do any act in f addition to the

  • Subjects 9 Bar syllabus groups
  • Codals 48 Primary legal sources

Negotiable Instruments Law

Section 5. Additional provisions not affecting negotiability.-An instrument which contains an order or promise to do any act in f addition to the payment of money is not negotiable. But the negotiable character of an instrument otherwise negotiable is not affected by a provision which-

(a) Authorizes the sale of collateral securities in case the instrument be not paid at maturity; or

(b) Authorizes a confession of judgment if the instrument be not paid at maturity; or

(c) Waives the benefit of any law intended for the advantage or protection of the obligor; or

(d) Gives the holder an election to require something to be done in lieu of payment of money.

But nothing in this section shall validate any provision or stipulation otherwise illegal.

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