Section 3--105. When Promise or Order Unconditional  


Latest version.
  • (1) A promise or order otherwise unconditional is not made conditional
      by the fact that the instrument
             (a) is subject to implied or constructive conditions; or
             (b) states  its  consideration, whether performed or promised, or
                 the transaction which gave rise to the  instrument,  or  that
                 the  promise  or  order  is made or the instrument matures in
                 accordance with or "as per" such transaction; or
             (c) refers to  or  states  that  it  arises  out  of  a  separate
                 agreement  or refers to a separate agreement for rights as to
                 prepayment or acceleration; or
             (d) states that it is drawn under a letter of credit; or
             (e) states that it is secured, whether by  mortgage,  reservation
                 of title or otherwise; or
             (f) indicates  a  particular  account  to be debited or any other
                 fund or source from which reimbursement is expected; or
             (g) is limited to  payment  out  of  a  particular  fund  or  the
                 proceeds  of a particular source, if the instrument is issued
                 by a government or governmental agency or unit; or
             (h) is  limited  to  payment  out  of  the  entire  assets  of  a
                 partnership,  unincorporated  association, trust or estate by
                 or on behalf of which the instrument is issued.
        (2) A promise or order is not unconditional if the instrument
             (a) states that it  is  subject  to  or  governed  by  any  other
                 agreement; or
             (b) states that it is to be paid only out of a particular fund or
                 source except as provided in this section.