S-684                 _______________________________________________

                                                   SENATE BILL NO. 5079

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Senators Pullen and Talmadge

Read first time 1/11/89 and referred to Committee on  Law & Justice.

AN ACT Relating to the uniform commercial code; and amending RCW 62A.3-106 and 62A.3-109.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 3-106, chapter 157, Laws of 1965 ex. sess. and RCW 62A.3-106 are each amended to read as follows:

          (1) The sum payable is a sum certain even though it is to be paid

          (a) with stated 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) A rate of interest that cannot be calculated by looking only to the instrument is a stated rate of interest in subsection (1) of this section if the rate during any period 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 or established rate of one or more named financial institutions.

(3) Graduated, variable, annuity or price-level adjusted payments are stated installments in subsection (1) of this section if such payments are provided for in the instrument.

(4) Nothing in this section shall validate any term which is otherwise illegal.

        Sec. 2.  Section 3-109, chapter 157, Laws of 1965 ex. sess. and RCW 62A.3-109 are each amended to read as follows:

          (1) An instrument is payable at a definite time if by its terms it is payable

          (a) on or before a stated date or at a fixed period after a stated date; or

          (b) at a fixed period after sight; or

          (c) at a definite time subject to any acceleration; or

          (d) at a definite time subject to extension at the option of the holder, or to extension to a further definite time at the option of the maker or acceptor or automatically upon or after a specified act or event; or

(e) by variable, graduated, annuity or price-level adjusted payments.

          (2) An instrument which by its terms is otherwise payable only upon an act or event uncertain as to time of occurrence is not payable at a definite time even though the act or event has occurred.