Payable at a Definite Time (Banking) Law and Legal Definition

Payable at a definite time refers to a note payable payable on lapse of a certain period of time. Pursuant to U.C.C. § 3-108, a promise or order is payable at a definite time when the instrument is payable on lapse of a definite period of time after sight, acceptance, at a fixed time readily ascertainable at the time the instrument is issued. It is subject to rights of prepayment, acceleration, extension at the option of the holder, or extension to a further definite time. Extension to a further definite time is at the option of the maker, or acceptor or automatically upon or after a specified act or event.