Emil J. Amberboy, Appellants v. Societe De Banque Privee, Appellees

Summary

The Texas Supreme Court answered a certified question from the Fifth Circuit, holding that a promissory note whose interest rate is determined solely by reference to a bank's published prime rate satisfies the sum‑certain requirement and is therefore a negotiable instrument under the Texas Uniform Commercial Code. The Court based its decision on the UCC's purpose of commercial certainty and the ability to readily ascertain the rate from publicly available information. A concurring and dissenting opinion disagreed with this conclusion.