30-3-401. Signature. (1) A person is not liable on an instrument unless: (a) the person signed the instrument; or (b) the person is represented by an agent or representative who signed the instrument and the signature is binding on the represented person under 30-3-403. (2) A signature is made: (a) manually or by means of a device or machine; and […]
30-3-402. Repealed. Sec. 230, Ch. 410, L. 1991. History: En. Sec. 3-402, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-402.
30-3-403. 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 were […]
30-3-404. Unauthorized signatures. (1) Unless otherwise provided in this chapter, 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 chapter. (2) If the signature of […]
30-3-405. Impostors — fictitious payees. (1) If an impostor by use of the mails or otherwise induces the maker or drawer 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 […]
30-3-406. 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 the […]
30-3-407. Alteration. (1) “Alteration” means: (a) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party to the instrument; or (b) an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of any party to the instrument. (2) Except as provided in subsection […]
30-3-408. Repealed. Sec. 230, Ch. 410, L. 1991. History: En. Sec. 3-408, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-408.
30-3-409. 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. History: En. Sec. 3-409, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-409; […]
30-3-410. Acceptance of draft — certified check. (1) “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 pursuant to instructions is given or the accepted draft […]
30-3-411. Repealed. Sec. 230, Ch. 410, L. 1991. History: En. Sec. 3-411, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-411.
30-3-412. 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. (2) The terms of the draft are not varied by an acceptance to pay at […]
30-3-413. Obligation of maker. (1) A maker of a note is obliged to pay the note: (a) according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder; or (b) if the maker signed an incomplete instrument, according to its terms when completed as […]
30-3-414. Obligation of indorser. (1) Subject to subsections (2) through (4) and to 30-3-415(4), if an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument according to the terms of the instrument at the time it was indorsed or if the indorser indorsed an incomplete instrument, according to its terms […]
30-3-415. Instruments signed for accommodation. (1) 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 without being a direct beneficiary of the value given for the […]
30-3-416. Repealed. Sec. 230, Ch. 410, L. 1991. History: En. Sec. 3-416, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-416.
30-3-417. Transfer warranties. (1) A person who transfers an instrument for consideration warrants 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; (b) all signatures on the instrument are authentic and authorized; (c) the instrument has not been altered; (d) the instrument is […]
30-3-418. Repealed. Sec. 230, Ch. 410, L. 1991. History: En. Sec. 3-418, Ch. 264, L. 1963; R.C.M. 1947, 87A-3-418.
30-3-419. Conversion of instrument. (1) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if the instrument lacks an indorsement necessary for negotiation and it is purchased or taken for collection or the drawee takes the instrument and makes payment to a person not entitled to receive payment. An […]
30-3-420. Employer responsibility for fraudulent indorsement by employee. (1) This section applies to fraudulent indorsements of instruments with respect to which an employer has entrusted an employee with responsibility as part of the employee’s duties. The following definitions apply to this section: (a) ”Employee” includes, in addition to an employee of an employer, an independent contractor and […]
