Title 45 — Trade and Commerce
49 chapters · 1,288 sections in this title.
AS 45.03.120 Secs. 45.03.120 — 45.03.122. Instruments payable through bank; instruments payable at bank; accrual of cause of action. [Repealed, § 127 ch 35 SLA 1993.]
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Article 2. Transfer and Negotiation.
AS 45.03.201 Negotiation.
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(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 the holder of the instrument. (b) Except for negotiation by a remitter, if an instrument is payable to an identif…
AS 45.03.202 Negotiation subject to rescission.
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(a) Negotiation is effective even if obtained (1) from an infant, a corporation exceeding its powers, or a person without capacity; (2) by fraud, duress, or mistake; or (3) in breach of duty or as part of an illegal transaction. (b) To the extent permitted by other law, negotiati…
AS 45.03.203 Transfer of instrument; rights acquired by transfer.
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(a) An instrument is transferred when the instrument is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to enforce the instrument. (b) Transfer of an instrument, whether or not the transfer is a negotiation, vests i…
AS 45.03.204 Endorsement.
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(a) “Endorsement” means a signature, other than that of a signer as maker, drawer, or acceptor, that alone or accompanied by other words is made on an instrument for the purpose of negotiating the instrument, restricting payment of the instrument, or incurring endorser's liabilit…
AS 45.03.205 Special endorsement; blank endorsement; anomalous endorsement.
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(a) If an endorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the endorsement identifies a person to whom it makes the instrument payable, it is a “special endorsement.” When specially endorsed, an instrument becom…
AS 45.03.206 Restrictive endorsement.
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(a) An endorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective to prevent further transfer or negotiation of the instrument. (b) An endorsement stating a condition to the right of the endorsee…
AS 45.03.207 Reacquisition.
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Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise. A former holder who reacquires the instrument may cancel endorsements made after the reacquirer first became a holder of the instrument. If the cancellation causes the inst…
AS 45.03.208 Reacquisition. [Repealed, § 127 ch 35 SLA 1993.]
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Article 3. Rights of a Holder.
AS 45.03.301 Person entitled to enforce instrument.
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A person entitled to enforce an instrument is the holder of the instrument, a nonholder in possession of the instrument who has the rights of a holder, or a person not in possession of the instrument who is entitled to enforce the instrument under AS 45.03.309 or 45.03.418(d). A …
AS 45.03.302 Holder in due course.
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(a) Subject to (c) of this section and AS 45.03.106(d), “holder in due course” means the holder of an instrument, if (1) the instrument when issued or negotiated to the holder does not bear such apparent evidence of forgery or alteration or is not otherwise so irregular or incomp…
AS 45.03.303 Value and consideration.
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(a) An instrument is issued or transferred for value if (1) the instrument is issued or transferred for a promise of performance, to the extent the promise has been performed; (2) the transferee acquires a security interest or other lien in the instrument other than a lien obtain…
AS 45.03.304 Overdue instrument.
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(a) An instrument payable on demand becomes overdue at the earliest of the following times: (1) on the day after the day demand for payment is duly made; (2) if the instrument is a check, 90 days after its date; or (3) if the instrument is not a check, when the instrument has bee…
AS 45.03.305 Defenses and claims in recoupment.
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(a) Except as stated in (b) of this section, the right to enforce the obligation of a party to pay an instrument is subject to the following: (1) a defense of the obligor based on (A) infancy of the obligor, to the extent it is a defense to a simple contract; (B) duress, lack of …
AS 45.03.306 Claims to an instrument.
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A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a property or possessory right in the instrument or its proceeds, including a claim to rescind a negotiation and to recover the instrument or its proceeds. A perso…
AS 45.03.307 Notice of breach of fiduciary duty.
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(a) If an instrument is taken from a fiduciary for payment or collection or for value, the taker has knowledge of the fiduciary status of the fiduciary, and the represented person makes a claim to the instrument or its proceeds on the basis that the transaction of the fiduciary i…
AS 45.03.308 Proof of signatures and status as holder in due course.
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(a) In an action with respect to an instrument, the authenticity of, and authority to make, each signature on the instrument is admitted unless specifically denied in the pleadings to which a responsive pleading is required. If the validity of a signature is denied in the pleadin…
AS 45.03.309 Enforcement of lost, destroyed, or stolen instrument.
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(a) A person not in possession of an instrument is entitled to enforce the instrument if (1) the person was in possession of the instrument and entitled to enforce it when loss of possession occurred; (2) the loss of possession was not the result of a transfer by the person or a …
AS 45.03.310 Effect of instrument on obligation for which taken.
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(a) Unless otherwise agreed, if a certified check, cashier's check, or teller's check is taken for an obligation, the obligation is discharged to the same extent discharge would result if an amount of money equal to the amount of the instrument were taken in payment of the obliga…
AS 45.03.311 Accord and satisfaction by use of instrument.
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(a) The provisions of this section apply if a person against whom a claim is asserted proves that (1) the person in good faith tendered an instrument to the claimant as full satisfaction on the claim; (2) the amount of the claim was unliquidated or subject to a bona fide dispute;…
AS 45.03.312 Lost, destroyed, or stolen cashier's check, teller's check, or certified check.
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Article 4. Liability of Parties. (a) A claimant may assert a claim to the amount of a check by a communication to the obligated bank describing the check with reasonable certainty and requesting payment of the amount of the check, if (1) the claimant is the drawer or payee of a c…
AS 45.03.401 Signature.
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(a) A person is not liable on an instrument unless (1) the person signed the instrument; or (2) the person is represented by an agent or representative who signed the instrument and the signature is binding on the represented person under AS 45.03.402. (b) A signature may be made…
AS 45.03.402 Signature by representative.
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(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 represented person would be bound if the s…
AS 45.03.403 Unauthorized signature.
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(a) Unless otherwise provided in this chapter or AS 45.04, 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 a…
AS 45.03.404 Impostors; fictitious payees.
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(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 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 endorsem…
AS 45.03.405 Employer's responsibility for fraudulent endorsement by employee.
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(a) For the purpose of determining the rights and liabilities of a person who, in good faith, pays an instrument or takes it for value or for collection, if an employer entrusted an employee with responsibility with respect to the instrument and the employee or a person acting in…
AS 45.03.406 Negligence contributing to forged signature or alteration of instrument.
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(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 person who, in good faith, pays the instrum…
AS 45.03.407 Alteration.
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(a) Except as provided in (b) of this section, an alteration fraudulently made discharges a party whose obligation is affected by the alteration unless that party assents or is precluded from asserting the alteration. Another alteration does not discharge a party, and the instrum…
AS 45.03.408 Drawee not liable on unaccepted draft.
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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 the instrument.
AS 45.03.409 Acceptance of draft; certified check.
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(a) “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 in accordance with instructions is…
AS 45.03.410 Acceptance varying draft.
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(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 draft are not varied by an acceptance to pay at …
AS 45.03.411 Refusal to pay cashier's checks, teller's checks, and certified checks.
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(a) If the obligated bank wrongfully refuses to pay a cashier's check or certified check, stops payment of a teller's check, or refuses to pay a dishonored teller's check, the person asserting the right to enforce the check is entitled to compensation for expenses and loss of int…
AS 45.03.412 Obligation of issuer of note or cashier's check.
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The issuer of a note, cashier's check, or other draft drawn on the drawer is obliged to pay the instrument 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; if the issuer signed an incomplete instrument, the…
AS 45.03.413 Obligation of acceptor.
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(a) The acceptor of a draft is obliged to pay the draft 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; if the acceptance varies the terms of the draft, the acceptor is obli…
AS 45.03.414 Obligation of drawer.
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(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 according to its terms at the time it was issued or, if not issued, at the time it first came into possession …
AS 45.03.415 Obligation of endorser.
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(a) Subject to (b) — (e) of this section and AS 45.03.419(d), if an instrument is dishonored an endorser is obliged to pay the amount due on the instrument according to the terms of the instrument at the time it was endorsed or, if the endorser endorsed an incomplete instrument, …
AS 45.03.416 Transfer warranties.
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[Repealed or reserved.]
AS 45.03.417 Presentment warranties.
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(a) 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…
AS 45.03.418 Payment or acceptance by mistake.
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(a) Except as provided in (c) of this section, if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that payment of the draft had not been stopped under AS 45.04.403 or that the signature of the drawer of the draft was authorized, the dra…
AS 45.03.419 Instruments signed for accommodation.
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(a) If an instrument is issued for value given for the benefit of a party to the instrument, the “accommodated party,” and another party to the instrument, the “accommodation party,” signs the instrument for the purpose of incurring liability on the instrument without being a dir…
AS 45.03.420 Conversion of instrument.
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Article 5. Presentment, Notice of Dishonor, and Protest. (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, o…
AS 45.03.501 Presentment.
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(a) “Presentment” means a demand made by or on behalf of a person entitled to enforce an instrument (1) to pay the instrument made to the drawee or a party obliged to pay the instrument or, in the case of a note or accepted draft payable at a bank, to the bank; or (2) to accept a…
AS 45.03.502 Dishonor.
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(a) Dishonor of a note is governed by the following rules: (1) if the note is payable on demand, the note is dishonored if presentment is duly made to the maker and the note is not paid on the day of presentment; (2) if the note is not payable on demand and is payable at or throu…
AS 45.03.503 Notice of dishonor.
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(a) The obligation of an endorser stated in AS 45.03.415(a) and the obligation of a drawer stated in AS 45.03.414(d) may not be enforced unless the endorser or drawer is given notice of dishonor of the instrument complying with this section or notice of dishonor is excused under …
AS 45.03.504 Excused presentment and notice of dishonor.
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(a) Presentment for payment or acceptance of an instrument is excused if (1) the person entitled to present the instrument cannot with reasonable diligence make presentment; (2) the maker or acceptor has repudiated an obligation to pay the instrument or is dead or in insolvency p…
AS 45.03.505 Evidence of dishonor.
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(a) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated: (1) a document regular in form as provided in (b) of this section that purports to be a protest; (2) a purported stamp or writing of the drawee, payor bank, or …
AS 45.03.506 Secs. 45.03.506 — 45.03.511. Time for acceptance or payment; dishonor; protest; waiver or excuse. [Repealed, § 127 ch 35 SLA 1993.]
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Article 6. Discharge.
AS 45.03.601 Discharge and effect of discharge.
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(a) The obligation of a party to pay the instrument is discharged as stated in this chapter or by an act or agreement with the party that would discharge an obligation to pay money under a simple contract. (b) Discharge of the obligation of a party is not effective against a pers…
AS 45.03.602 Payment.
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(a) Subject to (b) of this section, an instrument is paid to the extent payment is made by or on behalf of a party obliged to pay the instrument and to a person entitled to enforce the instrument. To the extent of the payment, the obligation of the party obliged to pay the instru…
AS 45.03.603 Tender of payment.
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(a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract. (b) If tender of payment of an obligation to pay a…