payable on demand


Also found in: Financial.

payable on demand

adj. a debt on a promissory note or bill of exchange which must be paid when demanded by the payee (party to whom the debt is owed).

References in periodicals archive ?
Many practitioners believe that using a note would constitute economic payment and not cause disqualification if the note is negotiable, bears interest at a market rate, is payable on demand and is secured by the GRAT's assets.
If a seller receives evidence of indebtedness that is payable on demand or readily tradable, the debt instrument is treated as payment (Section 453(f)(4)).
The Seventh Circuit Court of Appeals believed the term payable on demand refers to cases in which the amount is already set and the seller has the right to choose the time of payment.