Question: A note reads, Interest hereon is 2 % above the prime rate as determined by First National Bank in New York City. Under the UCC

A note reads, "Interest hereon is 2% above the prime rate as determined by First National Bank in New York City."
Under the UCC cdots
variable interest rates are OK.
the interest rate provision is not a "sum certain" so negotiability is destroyed.
the rote is not negotiable because the holder must look to some extrinsic source to determine the interest rate.
the rote isn't negotiable because the prime rate can vary before the note comes due.
A note reads, "Interest hereon is 2% above the prime rate

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