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Unconditional promise or order - 13 Pa. Cons. Stat. § 3106

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     § 3106.  Unconditional promise or order.
        (a)  When conditional.--Except as provided in this section,
     for the purposes of section 3104(a) (relating to negotiable
     instrument), a promise or order is unconditional unless it
     states:
            (1)  an express condition to payment;
            (2)  that the promise or order is subject to or governed
        by another writing; or
            (3)  that rights or obligations with respect to the
        promise or order are stated in another writing.
     A reference to another writing does not of itself make the
     promise or order conditional.
        (b)  When promise or order not made conditional.--A promise
     or order is not made conditional:
            (1)  by a reference to another writing for a statement of
        rights with respect to collateral, prepayment or
        acceleration; or
            (2)  because payment is limited to resort to a particular
        fund or source.
        (c)  Promise or order not made conditional when
     countersignature as condition to payment is required.--If a
     promise or order requires, as a condition to payment, a
     countersignature by a person whose specimen signature appears on
     the promise or order, the condition does not make the promise or
     order conditional for the purposes of section 3104(a). If the
     person whose specimen signature appears on an instrument fails
     to countersign the instrument, the failure to countersign is a
     defense to the obligation of the issuer, but the failure does
     not prevent a transferee of the instrument from becoming a
     holder of the instrument.
        (d)  Promise or order not made conditional by containing
     certain statements required by law.--If a promise or order at
     the time it is issued or first comes into possession of a holder
     contains a statement, required by applicable statutory or
     administrative law, to the effect that the rights of a holder or
     transferee are subject to claims or defenses that the issuer
     could assert against the original payee, the promise or order is
     not thereby made conditional for the purposes of section
     3104(a); but if the promise or order is an instrument, there
     cannot be a holder in due course of the instrument.

        Cross References.  Section 3106 is referred to in section
     3302 of this title.

Last modified: November 27, 2007