Title 47 — Uniform Commercial Code

A. The acceptor of a draft is obliged to pay the draft: 1. 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; 2. If the acceptance varies the terms of the draft, according to t…

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 of…

A. Subject to subsections B, C, D and E of this section and to section 47-3419, subsection D, 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 in…

A. A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee that: 1. The warrantor is a person entitled to enforce the instrument; 2. All signatures on the instrument are authentic and a…

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 …

A. Except as provided in subsection 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 pursuant to section 47-4403 or the signature of the drawer of the draft was authori…

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 without being a direct benef…

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 to the instr…

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 d…

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 through …

A. The obligation of an indorser stated in section 47-3415, subsection A and the obligation of a drawer stated in section 47-3414, subsection D may not be enforced unless: 1. The indorser or drawer is given notice of dishonor of the instrument complying with this section; or 2. N…

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 pro…

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 subsection B which purports to be a protest; 2. A purported stamp or writing of the drawee, payor bank or presenting…

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 which would discharge an obligation to pay money under a simple contract. B. Discharge of the obligation of a party is not effective against a perso…

A. Subject to subsection 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 th…

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 an …

A. A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument: 1. By an intentional voluntary act, such as surrender of the instrument to the party, destruction, mutilation or cancellation of the instru…

A. In this section, the term "indorser" includes a drawer having the obligation described in section 47-3414, subsection D. B. Discharge, under section 47-3604, of the obligation of a party to pay an instrument does not discharge the obligation of an indorser or accommodation par…