Cole v. Davis

Illinois Appellate Court
Civil Court
Uniform Commercial Code
Citation
Case Number: 
2016 IL App (1st) 152716
Decision Date: 
Friday, August 26, 2016
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Certified question answered.
Justice: 
GORDON

A confession of judgment under a note drafted under the UCC is valid where the note references a variable interest rate and has a definite principal sum. Section 3-112 of the UCC is applicable and explicitly allows for negotiable instruments to contain a fixed principal and a variable interest rate. (LAMPKIN and BURKE, concurring.)