Under section 22 of the Negotiable Instruments Act, 1881, what is the maturity date of a promissory…
Section 22 of the Negotiable Instruments Act, 1881 defines maturity as the date on which the instrument falls due. The nominal date or signing date may differ from maturity.…
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Under section 22 of the Negotiable Instruments Act, 1881, what is the maturity date of a promissory note or bill of exchange?
Answer and explanation
Correct answer B
Section 22 of the Negotiable Instruments Act, 1881 defines maturity as the date on which the instrument falls due. The nominal date or signing date may differ from maturity. Section 22 also allows three days of grace for instruments covered by its second paragraph.
Option feedback
Option A
The date stated in the instrument does not necessarily establish when it falls due.
Option B
Section 22 defines maturity by when the instrument falls due.
Option C
Signing does not determine maturity independently of the payment terms and statutory rules.
Option D
Acquisition by the holder is not the statutory maturity event.
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