Payable On Demand is a financial term that refers to a type of payment that must be made immediately upon request. It is typically used in the context of checks or other financial instruments that are considered to be payable on demand. This means that the recipient of the payment can present the instrument to the issuer and demand immediate payment. The issuer is then obligated to make the payment without delay. This type of payment is often used for urgent or time-sensitive transactions where immediate funds are required.
“Payable on demand” means that a debt or obligation must be paid immediately upon request by the creditor.
Examples of debts that are often payable on demand include credit card balances, personal loans, and certain types of business loans.
Yes, as long as the debt is payable on demand, the creditor can demand payment at any time.
If you don’t pay a debt that is payable on demand, the creditor may take legal action to collect the debt, such as filing a lawsuit or garnishing your wages.
No, the terms of a payable on demand debt cannot be changed without the agreement of both parties.
Yes, a payable on demand debt can be discharged in bankruptcy, but the creditor may still have the right to demand payment if the bankruptcy case is dismissed.
Yes, a creditor can charge interest on a payable on demand debt, as long as the interest rate is specified in the original agreement.
Yes, a payable on demand debt can be transferred to another party, but the new creditor will have the same rights and obligations as the original creditor.
Yes, a payable on demand debt can be forgiven if the creditor agrees to forgive the debt or if the debt is discharged in bankruptcy.
Yes, a payable on demand debt can be secured by collateral, such as a car or a house, but the terms of the security agreement must be specified in the original agreement.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 13th April 2024.
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