A promissory note that is payable on demand is payable at the will of the holder. A promissory note without a specified time of payment, according to N. Bank v. Pefferoni Pizza Co., may also be considered payable on demand.
The note is payable at the will of the holder because the note is due soon after it is executed and delivered. The exact due date depends on the jurisdiction. In Nebraska, for instance, a court in Solar Motors, Inc. v. First Nat. Bank of Chadron found that a note payable on demand is due the day after it is executed and delivered. In Alabama, on the other hand, a court in Esslinger v. Spragins found that the note is due immediately after delivery.
[Last updated in July of 2020 by the Wex Definitions Team]