Multiple choice

The payment of negotiable instrument becomes due

  1. at maturity

  2. before maturity

  3. on third day of maturity under the grace period

  4. after maturity
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A Correct answer
Explanation

The maturity of a promissory note or bill of exchange is the date at which it falls due. Days of grace— every promissory note or bill of exchange which is not expressed to be payable on demand, at sight or on presentment is at maturity on the third day after the day on which it is expressed to be payable.

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