§3-1401. Signature (1). A person is not liable on an instrument unless: (a). The person signed the instrument; or [PL 1993, c. 293, Pt. A, §2 (NEW).] (b). The person is represented by an agent or representative who signed the instrument and the signature is binding on the represented person under section 3-1402. […]
§3-1402. Signature by representative (1). If a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person or the name of the signer, the represented person is bound by the signature to the same extent the represented person would be bound if the signature […]
§3-1403. Unauthorized signature (1). Unless otherwise provided in this Article or Article 4, an unauthorized signature is ineffective except as the signature of the unauthorized signer in favor of a person who in good faith pays the instrument or takes it for value. An unauthorized signature may be ratified for all purposes of this Article. […]
§3-1404. Impostors; fictitious payees (1). If an impostor by use of the mails or otherwise induces the issuer of an instrument to issue the instrument to the impostor, or to a person acting in concert with the impostor, by impersonating the payee of the instrument or a person authorized to act for the payee, an […]
§3-1405. Employer’s responsibility for fraudulent indorsement by employee (1). In this section, unless the context otherwise indicates, the following terms have the following meanings. (a). “Employee” includes an independent contractor and employee of an independent contractor retained by the employer. [PL 1993, c. 293, Pt. A, §2 (NEW).] (b). “Fraudulent indorsement” means: […]
§3-1406. Negligence contributing to forged signature or alteration of instrument (1). A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged signature on an instrument is precluded from asserting the alteration or the forgery against a person who, in good faith, pays […]
§3-1407. Alteration (1). “Alteration” means: (a). An unauthorized change in an instrument that purports to modify in any respect the obligation of a party; or [PL 1993, c. 293, Pt. A, §2 (NEW).] (b). An unauthorized addition of words or numbers or other change to an incomplete instrument related to the obligation of […]
§3-1408. Drawee not liable on unaccepted draft A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the drawee accepts it. [PL 1993, c. 293, Pt. A, §2 (NEW).] […]
§3-1409. Acceptance of draft; certified check (1). “Acceptance” means the drawee’s signed agreement to pay a draft as presented. Acceptance must be written on the draft and may consist of the drawee’s signature alone. Acceptance may be made at any time and becomes effective when notification pursuant to instructions is given or the accepted draft […]
§3-1410. Acceptance varying draft (1). If the terms of a drawee’s acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat the draft as dishonored. In that case, the drawee may cancel the acceptance. [PL 1993, c. 293, Pt. A, §2 (NEW).] (2). The terms of […]
§3-1411. Refusal to pay cashier’s checks, teller’s checks and certified checks (1). In this section, “obligated bank” means the acceptor of a certified check or the issuer of a cashier’s check or teller’s check bought from the issuer. [PL 1993, c. 293, Pt. A, §2 (NEW).] (2). The person asserting the right to enforce […]
§3-1412. Obligation of issuer of note or cashier’s check The issuer of a note or cashier’s check or other draft drawn on the drawer is obliged to pay the instrument: [PL 1993, c. 293, Pt. A, §2 (NEW).] (1). According to its terms at the time it was issued or, if not issued, at […]
§3-1413. Obligation of acceptor (1). The acceptor of a draft is obliged to pay the draft: (a). According to its terms at the time it was accepted, even though the acceptance states that the draft is payable “as originally drawn” or equivalent terms; [PL 1993, c. 293, Pt. A, §2 (NEW).] (b). If […]
§3-1414. Obligation of drawer (1). This section does not apply to cashier’s checks or other drafts drawn on the drawer. [PL 1993, c. 293, Pt. A, §2 (NEW).] (2). When an unaccepted draft is dishonored, the drawer is obliged to pay the draft: (a). According to its terms at the time it was […]
§3-1415. Obligation of indorser (1). Subject to subsections (2), (3), (4) and (5) and to section 3‑1419, subsection (4), when an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument: (a). According to the terms of the instrument at the time it was indorsed; or [PL 1993, […]
§3-1416. Transfer warranties (1). A person who transfers an instrument for consideration shall warrant to the transferee and, if the transfer is by indorsement, to any subsequent transferee that: (a). The warrantor is a person entitled to enforce the instrument; [PL 1993, c. 293, Pt. A, §2 (NEW).] (b). All signatures on the […]
§3-1417. Presentment warranties (1). If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, the person obtaining payment or acceptance, at the time of presentment, and a previous transferor of the draft, at the time of transfer, warrant to the drawee making payment or […]
§3-1418. Payment or acceptance by mistake (1). Except as provided in subsection (3), the drawee may recover the amount of the draft from the person to whom or for whose benefit payment was made or, in the case of acceptance, may revoke the acceptance if the drawee of a draft pays or accepts the draft […]
§3-1419. Instruments signed for accommodation (1). If an instrument is issued for value given for the benefit of a party to the instrument, in this section referred to as the “accommodated party,” and another party to the instrument, in this section referred to as the “accommodation party,” signs the instrument for the purpose of incurring […]
§3-1420. Conversion of instrument (1). The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than a negotiation, from a person not entitled to enforce the instrument or a bank makes or obtains payment with respect to the instrument for a person […]
