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-“[[Simple contract]]” is not defined, but the context of a [[Limitation Act]] puts it in contrast to:
+Under the [[Limitation Act 1980]] a “'''[[Simple contract]]'''” is one that is neither a “[[specialty]]”<ref>A written document like a [[security deed]] that has been sealed, delivered and given as security for the payment of a specific debt.</ref> nor an [[insurance contract]]<ref>Perhaps not “simple” because of the implied duty of [[utmost good faith]] — who knows?</ref> nor a  “[[contract of loan]]” which has no fixed repayment date, where repayment is not [[Condition precedent|conditional]] on a demand, ''[warning:strap yourselves in for this next bit]''
-*'''[[Insurance contract]]s''': payment claims under [[insurance contract]]s — perhaps not “simple” because of the duty of [[utmost good faith]] implied in them — who knows?
+{{quote|
-*'''[[Contract of loan]]s''': any “[[contract of loan]]” which:
+“except where, in connection with taking the loan, the debtor enters into any [[collateral]] obligation to pay the amount of the debt or any part of it (as, for example, by delivering a [[promissory note]] as [[security]] for the [[debt]]) on terms which would exclude the application of this section to the [[contract of loan]] if they applied directly to repayment of the [[debt]].”}}
-:''(a) does not provide for repayment at a fixed or [[Maturity|determinable date]]; [[and]] <br>
-:''(b) does not make the repayment obligation [[Condition precedent|conditional]] on a repayment demand by the creditor (or on any other matter);
-:[warning:strap yourselves in for this:] ''except where in connection with taking the loan the debtor enters into any [[collateral]] obligation to pay the amount of the debt or any part of it (as, for example, by delivering a [[promissory note]] as [[security]] for the [[debt]]) on terms which would exclude the application of this section to the [[contract of loan]] if they applied directly to repayment of the [[debt]].
-Now for a short piece of text this is bloody hard to decipher. There are no explanatory notes to the [[Limitation Act 1980]] — in the good old days, you were just meant to figure it out for yourself — but for help we do have that Law Commission bunker buster which says “section 6 does not apply where the debtor enters into a collateral obligation to pay the amount of the debt or any part of it on a fixed or determinable date or conditional on a demand for repayment (or other condition).” So if the [[promissory note]] itself is a demand loan, but it is pledged as collateral for another debt which isn’t, then it counts as having a payment date. That's the best I can do. <br>
+We quote that last bit in full because, for a short extract, it is ''bloody'' hard to decipher. There are no explanatory notes to the [[Limitation Act 1980]], but for help we have that Law Commission bunker buster which says:
+{{quote|“Section 6 does not apply where the debtor enters into a collateral obligation to pay the amount of the debt or any part of it on a fixed or determinable date or conditional on a demand for repayment (or other condition).”}}
+So if the [[promissory note]] itself is a demand loan, but it is pledged as collateral for another debt which isn’t, then it counts as having a payment date. That’s the best I can do. <br>
+Note: “repayment on a stated maturity date, conditional upon demand by the creditor”, sounds a lot like the process for redeeming a bond — at least when held in physical, definitive form. Thus, definitive debt securities are ''not'' simple contracts.
+Whether this is true of electronically cleared debt securities — that is, ahhh — all of them, these days — is a an interesting question, as these are paid out automatically to account holders in [[clearing system]]s.