What does due on demand mean?
A promissory note payable on demand is a way to get repaid when you loan money to someone. It is a document that states the terms of the loan and includes the “payable on demand” notation on it. This means that you can demand full payment of the loan at any time you deem necessary.
Is a check payable on demand?
For example, a signed promissory note may not state a due date for payment. Alternatively, if no date is added to the note, then the default UCC rule is that the note is payable on demand. Also, a check with no payee listed is incomplete, but, nonetheless, according to the UCC, such a check is payable to the bearer.
What is loan payable on demand?
The law defines a loan made that has no specified date for repayment, or that is payable on request, as a loan payable on demand. Once the money is handed over the lender has an immediate right to sue for recovery of the debt.