Section 57A-3-101 – Short title.

57A-3-101. Short title. This chapter may be cited as Uniform Commercial Code–Negotiable Instruments. Source: SL 1994, ch 367, §3-101.

Section 57A-3-102 – Subject matter.

57A-3-102. Subject matter. (a) This chapter applies to negotiable instruments. It does not apply to money, to payment orders governed by chapter 57A-4A, or to securities governed by chapter 57A-8. (b) If there is conflict between this chapter and chapter 57A-4 or 57A-9, chapters 57A-4 and 57A-9 govern. (c) Regulations of the board of governors […]

Section 57A-3-103 – Definitions.

57A-3-103. Definitions. (a) In this chapter: (1)”Acceptor” means a drawee who has accepted a draft. (2)”Drawee” means a person ordered in a draft to make payment. (3)”Drawer” means a person who signs or is identified in a draft as a person ordering payment. (4)(Reserved.) (5)”Maker” means a person who signs or is identified in a […]

Section 57A-3-104 – Negotiable instrument.

57A-3-104. Negotiable instrument. (a) Except as provided in subsections (c) and (d), “negotiable instrument” means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it: (1)Is payable to bearer or to order at the time it is issued […]

Section 57A-3-105 – Issue of instrument.

57A-3-105. Issue of instrument. (a) “Issue” means the first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for the purpose of giving rights on the instrument to any person. (b) An unissued instrument, or an unissued incomplete instrument that is completed, is binding on the maker or drawer, […]

Section 57A-3-106 – Unconditional promise or order.

57A-3-106. Unconditional promise or order. (a) Except as provided in this section, for the purposes of §57A-3-104(a), a promise or order is unconditional unless it states (i) an express condition to payment, (ii) that the promise or order is subject to or governed by another writing, or (iii) that rights or obligations with respect to […]

Section 57A-3-107 – Instrument payable in foreign money.

57A-3-107. Instrument payable in foreign money. Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in an equivalent amount in dollars calculated by using the current bank-offered spot rate at the place of payment for the purchase of dollars on the […]

Section 57A-3-108 – Payable on demand or at definite time.

57A-3-108. Payable on demand or at definite time. (a) A promise or order is “payable on demand” if it (i) states that it is payable on demand or at sight, or otherwise indicates that it is payable at the will of the holder, or (ii) does not state any time of payment. (b) A promise […]

Section 57A-3-109 – Payable to bearer or to order.

57A-3-109. Payable to bearer or to order. (a) A promise or order is payable to bearer if it: (1)States that it is payable to bearer or to the order of bearer or otherwise indicates that the person in possession of the promise or order is entitled to payment; (2)Does not state a payee; or (3)States […]

Section 57A-3-110 – Identification of person to whom instrument is payable.

57A-3-110. Identification of person to whom instrument is payable. (a) The person to whom an instrument is initially payable is determined by the intent of the person, whether or not authorized, signing as, or in the name or behalf of, the issuer of the instrument. The instrument is payable to the person intended by the […]

Section 57A-3-111 – Place of payment.

57A-3-111. Place of payment. Except as otherwise provided for items in chapter 57A-4, an instrument is payable at the place of payment stated in the instrument. If no place of payment is stated, an instrument is payable at the address of the drawee or maker stated in the instrument. If no address is stated, the […]

Section 57A-3-112 – Interest.

57A-3-112. Interest. (a) Unless otherwise provided in the instrument, (i) an instrument is not payable with interest, and (ii) interest on an interest-bearing instrument is payable from the date of the instrument. (b) Interest may be stated in an instrument as a fixed or variable amount of money or it may be expressed as a […]

Section 57A-3-113 – Date of instrument.

57A-3-113. Date of instrument. (a) An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable at a fixed period after date. Except as provided in §57A-4-401(c), an instrument payable on demand is not payable before the date of the instrument. (b) If an instrument is […]

Section 57A-3-114 – Contradictory terms of instrument.

57A-3-114. Contradictory terms of instrument. If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers. Source: SL 1994, ch 367, §3-114.

Section 57A-3-115 – Incomplete instrument.

57A-3-115. Incomplete instrument. (a) “Incomplete instrument” means a signed writing, whether or not issued by the signer, the contents of which show at the time of signing that it is incomplete but that the signer intended it to be completed by the addition of words or numbers. (b) Subject to subsection (c), if an incomplete […]

Section 57A-3-116 – Joint and several liability–Contribution.

57A-3-116. Joint and several liability–Contribution. (a) Except as otherwise provided in the instrument, two or more persons who have the same liability on an instrument as makers, drawers, acceptors, indorsers who indorse as joint payees, or anomalous indorsers are jointly and severally liable in the capacity in which they sign. (b) Except as provided in […]

Section 57A-3-117 – Other agreements affecting instrument.

57A-3-117. Other agreements affecting instrument. Subject to applicable law regarding exclusion of proof of contemporaneous or previous agreements, the obligation of a party to an instrument to pay the instrument may be modified, supplemented, or nullified by a separate agreement of the obligor and a person entitled to enforce the instrument, if the instrument is […]

Section 57A-3-118 – Statute of limitations.

57A-3-118. Statute of limitations. (a) Except as provided in subsection (e), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within six years after the due date or dates stated in the note or, if a due date is accelerated, within six years […]

Section 57A-3-119 – Notice of right to defend action.

57A-3-119. Notice of right to defend action. In an action for breach of an obligation for which a third person is answerable over pursuant to this chapter or chapter 57A-4, the defendant may give the third person written notice of the litigation, and the person notified may then give similar notice to any other person […]

Section 57A-3-201 – Negotiation.

57A-3-201. Negotiation. (a) “Negotiation” means a transfer of possession, whether voluntary or involuntary, of an instrument by a person other than the issuer to a person who thereby becomes its holder. (b) Except for negotiation by a remitter, if an instrument is payable to an identified person, negotiation requires transfer of possession of the instrument […]