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Bills And Notes -Acceleration Provision As Affecting Negotiability

Michigan Law Review

In an action against the maker of a promissory note by an indorsee thereof, claiming to be a holder in due course, the question was the negotiability of the note. It contained a provision that "If the maker or anyone of the makers hereof shall fail to furnish additional security upon the demand of said company, said company is authorized to declare all indebtedness owed to it by the maker or makers hereof immediately due and payable without giving notice of said declaration." Held, the quoted language rendered the note nonnegotiable. American Finance Corp. v. Bourne, 190 Okla. …