13 Guam Code Ann. § 3112
Terms Used In 13 Guam Code Ann. § 3112
- Litigation: A case, controversy, or lawsuit. Participants (plaintiffs and defendants) in lawsuits are called litigants.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
(a) The omission of a statement of any consideration or of the place where the instrument is drawn or payable; or
(b) A statement that collateral has been given to secure obligations either on the instrument or otherwise of an obligor on the instrument or that in the case of default on those obligations the holder may realize on or dispose of the collateral; or
(c) A promise or power to maintain or protect collateral, or to give additional collateral; or
(d) A term authorizing a confession of judgment on the instrument if it is not paid when due; or
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13 Guam Code Ann. UNIFORM COMMERCIAL CODE
DIV. 3 COMMERCIAL PAPER
(e) A term purporting to waive the benefit of any law intended for the advantage or protection of any obligor; or
(f) A term in a draft providing that the payee by indorsing or cashing it acknowledges full satisfaction of an obligation of the drawer; or
(g) A statement in a draft drawn in a set of parts (Section 3801) to the effect that the order is effective only if no other part has been honored.
(2) Nothing in this section shall validate any term which is otherwise illegal.
COMMENT: Section 3112 is identical to Section 3-112 of the 1972 Official Text of the Uniform Commercial Code. For purpose and effect, see Official Comment. The section differs from the California version only insofar as subdivision (c) limits the additional material which can be included in an instrument without affecting negotiability. The California version was specifically rejected by the Permanent Editorial Board for the Uniform Commercial Code upon the ground that:
@The additional language [in the California version] introduces a highly elastic standard of negotiability that could well permit an indefinite number of long and complex provisions in negotiable instruments. At the same time, the new standard is sufficiently vague and general to be highly confusing in determining what provisions may or may not be included and what notes are or are not negotiable. It would not only move substantially away from the ‘courier without luggage’
principle, but, in addition, could produce substantial confusion and litigation.@
Permanent Editorial Board for the Uniform Code, Report No. 1 (1962 Official Text), p. 73 quoted in West Ann. Cal. Comm. Code § 3112, California Code Comment (1964).