Title 47 — Uniform Commercial Code

A. "Alteration" means: 1. An unauthorized change in an instrument that purports to modify in any respect the obligation of a party; or 2. An unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party. B. Except as p…

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.

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 pursuant to instructions is given or the ac…

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 a …

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 refuses to pay a cashier's check or certified check, stops payment of a teller's check or …

The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument: 1. 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 2. If the issuer signed an incomplete inst…

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…

This chapter may be cited as the uniform commercial code -- bank deposits and collections.

A. To the extent that items within this chapter are also within chapters 3 and 8 of this title, they are subject to those chapters. If there is conflict, this chapter governs chapter 3 of this title, but chapter 8 of this title governs this chapter. B. The liability of a bank for…

A. The effect of the provisions of this chapter may be varied by agreement, but the parties to the agreement cannot disclaim a bank's responsibility for its lack of good faith or failure to exercise ordinary care or limit the measure of damages for the lack or failure. However, t…

A. In this chapter, unless the context otherwise requires: 1. "Account" means any deposit or credit account with a bank, including a demand, time, savings, passbook, share draft or like account, other than an account evidenced by a certificate of deposit. 2. "Afternoon" means the…

In this chapter: 1. "Bank" means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union or trust company. 2. "Depositary bank" means the first bank to take an item even though it is also the payor bank unless the item is …

A. If an item states that it is "payable through" a bank identified in the item: 1. The item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item; and 2. The item may be presented for payment only by or through the bank. B. If an item…

A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under this chapter and chapter 3 of this title, except that service on the b…

A. For the purpose of allowing time to process items, prove balances and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of two p.m. or later as a cutoff hour for the handling of money and items and the making of ent…

A. Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may waive, modify or extend time limits imposed or permitted by this title fo…

A. "Agreement for electronic presentment" means an agreement, clearing-house rule or federal reserve regulation or operating circular providing that presentment of an item may be made by transmission of an image of an item or information describing the item ("presentment notice")…

An action to enforce an obligation, duty or right arising under this chapter must be commenced within three years after the cause of action accrues.

This chapter may be cited as uniform commercial code--funds transfers.

Except as otherwise provided in section 47-4A108 this chapter applies to funds transfers defined in section 47-4A104.

A. In this chapter: 1. "Payment order" means an instruction of a sender to a receiving bank, transmitted orally, electronically or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary if: (a) The instruction does not state …

In this chapter: 1. "Funds transfer" means the series of transactions, beginning with the originator's payment order, made for the purpose of making payment to the beneficiary of the order. The term includes any payment order issued by the originator's bank or an intermediary ban…

A. In this chapter: 1. "Authorized account" means a deposit account of a customer in a bank designated by the customer as a source of payment of payment orders issued by the customer to the bank. If a customer does not so designate an account, any account of the customer is an au…

A. The time of receipt of a payment order or communication cancelling or amending a payment order is determined by the rules applicable to receipt of a notice stated in section 47-1202. A receiving bank may fix a cut-off time or times on a funds-transfer business day for the rece…

Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of this chapter to the extent of the inconsistency.

A. Except as provided in subsection B of this section, this chapter does not apply to a funds transfer any part of which is governed by the electronic fund transfer act of 1978 (title XX, P.L. 95-630, 92 Stat. 3728, 15 United States Code section 1693 et seq.) as amended from time…

A. Unless a contrary intent clearly appears before the time that a settlement given by a collecting bank for an item is or becomes final, the bank, with respect to the item, is an agent or subagent of the owner of the item and any settlement given for the item is provisional. Thi…

A. A collecting bank must exercise ordinary care in: 1. Presenting an item or sending it for presentment; 2. Sending notice of dishonor or non-payment or returning an item other than a documentary draft to the bank's transferor after learning that the item has not been paid or ac…

Subject to chapter 3 of this title concerning conversion of instruments (section 47-3420) and restrictive indorsements (section 47-3206), only a collecting bank's transferor can give instructions that affect the bank or constitute notice to it, and a collecting bank is not liable…

A. A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved and the method generally used by it or others to present those items. B…

If a customer delivers an item to a depositary bank for collection: 1. The depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of delivery was a holder of the item, whether or not the customer indorses the item,…

Any agreed method that identifies the transferor bank is sufficient for the item's further transfer to another bank.

A. A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting bank that: 1. The warrantor is a person entitled to enforce the item; 2. All signatures on the item are authentic a…