Okla. Stat. tit. 12A § 3-112

Current through Laws 2024, c. 453.

Section 3-112 - Interest

(a) Unless otherwise provided in the instrument, (i) an instrument is not payable with interest, and (ii) interest on an interest-bearing instrument is payable from the date of the instrument.

(b) Interest may be stated in an instrument as a fixed or variable amount of money or it may be expressed as a fixed or variable rate or rates. The amount or rate of interest may be stated or described in the instrument in any manner and may require reference to information not contained in the instrument. If an instrument provides for interest, but the amount of interest payable cannot be ascertained from the description, interest is payable at the judgment rate in effect at the place of payment of the instrument and at the time interest first accrues.

Okla. Stat. tit. 12A, § 3-112

Laws 1961, p. 104, § 3-112; Amended by Laws 1991, SB 25, c. 117, § 37, eff. 1/1/1992.

Oklahoma Code Comment

This Section, much changed by the 1992 UCC revisions, is intended to clarify and recodify most of the basic principles of pre-revision Section 3-106, as it elaborated upon pre-revision Section 3-104. Accordingly, to the extent cases properly interpreted the former provision, they likewise will represent proper interpretations of this Section. Moreover, the reformulation of the rule in sub section 3-104(a) and this Section to omit the "laundry list" in pre-revision Section 3-106 was not intended to change the law. Thus, cases such as Capital City State Bank v. Swift, 290 F. 505 (E.D. Okla. 1923), and Moore v. Interstate Mortgage Trust Co., 172 Okla. 471, 45 P.2d 485 (1935), continue to be valid, and cases such as Farmers' National Bank of Tecumseh v. McCall, 25 Okla. 600, 106 P. 866 (1910), remain superseded. In particular, this is true for the issue of whether variable-rate instruments can qualify as negotiable instruments. Sub section 3-104(a) and this Section adopt the rationale of cases like Goss v. Trinity Savings & Loan Association, 813 P.2d 492 (Okra. 1991), and disagree with the reasoning of cases decided under the pre-revision provisions such as the first opinion in Doyle v. Trinity Savings & Loan Association, 869 F.2d 558 (10th Cir. 1989). (On rehearing Doyle was reversed on this issue. See Doyle, 940 F.2d 592 (10th Cir. 1991), aff'd after remand, F.2d , 1993 W.L 260139 (July 15, 1993).)