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{{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).”}} | {{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> | 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. | |||
===The {{repackprov|covenant to pay}}=== | ===The {{repackprov|covenant to pay}}=== | ||
Hence why the {{repackprov|covenant to pay}} in the terms of a secured note issue is also repeated in the [[security trust deed]] — it converts itself from a [[simple contract]] to a [[specialty]]. This is a bity of a cheeky run-around, in our view, but still. | Hence why the {{repackprov|covenant to pay}} in the terms of a secured note issue is also repeated in the [[security trust deed]] — it converts itself from a [[simple contract]] to a [[specialty]]. This is a bity of a cheeky run-around, in our view, but still. | ||