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Bills of Exchange Act, 1964 (Act No. 34 of 1964)

Chapter III

Unindorsed or irregularly indorsed instruments

87. Promissory note defined


(1) A promissory note is an unconditional promise in writing made by one person to another, signed by the maker, and engaging to pay on demand or at a fixed or determinable future time, a sum certain in money, to a specified person or his order, or to bearer.


(2) An instrument in the form of a note payable to maker's order is not a note within the meaning of this section unless and until it is indorsed by the maker.


(3) A note is not invalid by reason only that it contains also a pledge of collateral security with authority to sell it or dispose thereof.