Effective – 28 Aug 1992 400.3-401. Signature. — (a) A person is not liable on an instrument unless (i) the person signed the instrument, or (ii) the person is represented by an agent or representative who signed the instrument and the signature is binding on the represented person under Section 400.3-402. (b) A signature may […]
Effective – 28 Aug 1992, 2 histories 400.3-402. Signature by representative. — (a) 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 […]
Effective – 28 Aug 1992, 2 histories 400.3-403. Unauthorized signature. — (a) 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 […]
Effective – 28 Aug 1992, 2 histories 400.3-404. Impostors — fictitious payees. — (a) 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 […]
Effective – 28 Aug 1992, 2 histories 400.3-405. Employer’s responsibility for fraudulent endorsement by employee. — (a) In this section: (1) “Employee” includes an independent contractor and employee of an independent contractor retained by the employer. (2) “Fraudulent endorsement” means (i) in the case of an instrument payable to the employer, a forged endorsement purporting […]
Effective – 28 Aug 1992 400.3-406. Negligence contributing to forged signature or alteration of instrument. — (a) 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 […]
Effective – 28 Aug 1992 400.3-407. Alteration. — (a) “Alteration” means (i) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (ii) an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party. (b) Except […]
Effective – 28 Aug 1992, 2 histories 400.3-408. 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. ——– […]
Effective – 28 Aug 1992, 2 histories 400.3-409. Acceptance of draft — certified check. — (a) “Acceptance” means the drawee’s signed agreement to pay a draft as presented. It 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 […]
Effective – 28 Aug 1992, 2 histories 400.3-410. Acceptance varying draft. — (a) 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. (b) The terms of a […]
Effective – 28 Aug 1992, 2 histories 400.3-411. Refusal to pay cashier’s checks, teller’s checks, and certified checks. — (a) 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. (b) If the obligated bank wrongfully (i) refuses to […]
Effective – 28 Aug 1992, 2 histories 400.3-412. 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 (i) according to its terms at the time it was issued or, if not issued, at the […]
Effective – 28 Aug 1992, 2 histories 400.3-413. Obligation of acceptor. — (a) The acceptor of a draft is obliged to pay the draft (i) 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, (ii) if the acceptance […]
Effective – 28 Aug 1992, 2 histories 400.3-414. Obligation of drawer. — (a) This section does not apply to cashier’s checks or other drafts drawn on the drawer. (b) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft (i) according to its terms at the time it was issued or, […]
Effective – 28 Aug 1992, 2 histories 400.3-415. Obligation of endorser. — (a) Subject to subsections (b), (c), and (d) and to Section 400.3-419(d), if an instrument is dishonored, an endorser is obliged to pay the amount due on the instrument (i) according to the terms of the instrument at the time it was endorsed, […]
Effective – 28 Aug 2005, 2 histories 400.3-416. Transfer warranties. — (a) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by endorsement, to any subsequent transferee that: (1) the warrantor is a person entitled to enforce the instrument; (2) all signatures on the instrument are authentic […]
Effective – 28 Aug 2005 400.3-417. Presentment warranties. — (a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining payment or acceptance, at the time of presentment, and (ii) a previous transferor of the draft, at the time of […]
Effective – 28 Aug 1992 400.3-418. Payment or acceptance by mistake. — (a) Except as provided in subsection (c), if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that (i) payment of the draft had not been stopped pursuant to Section 400.4-403 or (ii) the […]
Effective – 28 Aug 1992, 2 histories 400.3-419. Instrument signed for accommodation. — (a) If an instrument is issued for value given for the benefit of a party to the instrument (“accommodated party” ) and another party to the instrument (“accommodation party” ) signs the instrument for the purpose of incurring liability on the instrument […]
Effective – 28 Aug 1992 400.3-420. Conversion of instrument. — (a) 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 […]
