N.Y. Uniform Commercial Code 3-106 – Sum Certain
Section 3–106. Sum Certain.
Terms Used In N.Y. Uniform Commercial Code 3-106
- Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances:
- You are late making a payment or commit some other default, triggering an increase to a penalty rate
- The bank changes the terms of your account and you do not reject the change.
- The rate expires (if the rate was fixed for only a certain period of time).
- Instrument: means a negotiable instrument. See N.Y. Uniform Commercial Code 3-102
- Statute: A law passed by a legislature.
(1) The sum payable is a sum certain even though it is to be paid
(a) with a stated rate of interest or by stated installments; or
(b) with stated different rates of interest before and after
default or a specified date; or
(c) with a stated discount or addition if paid before or after
the date fixed for payment; or
(d) with exchange or less exchange, whether at a fixed rate or at
the current rate; or
(e) with costs of collection or an attorney's fee or both upon
default.
(2) For the purposes of subsection one of this section "a stated rate of interest" shall also include a rate of interest that cannot be calculated by looking only to the instrument but which is readily ascertainable by a reference in the instrument to a published statute, regulation, rule of court, generally accepted commercial or financial index, compendium of interest rates, or announced rate of a named financial institution.
(3) Nothing in this section shall validate any term which is otherwise illegal.