Title XXXIX, Commercial Relations

(1) The term “issue” means:(a) 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; or(b) If agreed to by the payee, the first transmission by the drawer to the payee of an …

(1) Except as provided in this section, for the purposes of s. 673.1041(1), a promise or order is unconditional unless it states:(a) An express condition to payment;(b) That the promise or order is subject to or governed by another writing; or(c) That rights or obligations with r…

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 dollar…

(1) A promise or order is “payable on demand” if it:(a) States that it is payable on demand or at sight, or otherwise indicates that it is payable at the will of the holder; or(b) Does not state any time of payment.(2) A promise or order is “payable at a definite time” if it is p…

(1) A promise or order is “payable to bearer” if it:(a) 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;(b) Does not state a payee; or(c) States that it is payable to…

(1) 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 signer even if that perso…

Except as otherwise provided for items in chapter 674, 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, th…

(1) Unless otherwise provided in the instrument:(a) An instrument is not payable with interest; and(b) Interest on an interest-bearing instrument is payable from the date of the instrument.(2) Interest may be stated in an instrument as a fixed or variable amount of money, or it m…

(1) 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 s. 674.401(3), an instrument payable on demand is not payable before the date of the instrument.(2) If …

If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers.History.—s. 2, ch. 92-82.

(1) The term “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.(2) Subject to subsection …

(1) 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.(2…

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 t…

Chapter 95 governs when an action to enforce an obligation, duty, or right arising under this chapter must be commenced.History.—s. 2, ch. 92-82.

In an action for breach of an obligation for which a third person is answerable over pursuant to this chapter or chapter 674, 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 who is …

(1) The term “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.(2) Except for negotiation by a remitter, if an instrument is payable to an identified person…

(1) Negotiation is effective even if obtained:(a) From an infant, a corporation exceeding its powers, or a person without capacity;(b) By fraud, duress, or mistake; or(c) In breach of duty or as part of an illegal transaction.(2) To the extent permitted by other law, negotiation …

(1) An instrument is transferred when it 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.(2) Transfer of an instrument, whether or not the transfer is a negotiation, vests in the transfe…

(1) The term “indorsement” 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 indorser’s…

(1) If an indorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the indorsement identifies a person to whom it makes the instrument payable, it is a “special indorsement.” When specially indorsed, an instrument becom…

(1) An indorsement 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.(2) An indorsement stating a condition to the right of the indorsee …

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 indorsements made after the reacquirer first became a holder of the instrument. If the cancellation causes the inst…

The term “person entitled to enforce” an instrument means:(1) The holder of the instrument;(2) A nonholder in possession of the instrument who has the rights of a holder; or(3) A person not in possession of the instrument who is entitled to enforce the instrument pursuant to s. 6…

(1) Subject to subsection (3) and s. 673.1061(4), the term “holder in due course” means the holder of an instrument if:(a) 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 inco…

(1) An instrument is issued or transferred for value if:(a) The instrument is issued or transferred for a promise of performance, to the extent the promise has been performed;(b) The transferee acquires a security interest or other lien in the instrument other than a lien obtaine…

(1) An instrument payable on demand becomes overdue at the earliest of the following times:(a) On the day after the day demand for payment is duly made;(b) If the instrument is a check, 90 days after its date; or(c) If the instrument is not a check, when the instrument has been o…

(1) Except as stated in subsection (2), the right to enforce the obligation of a party to pay an instrument is subject to:(a) A defense of the obligor based on:1. Infancy of the obligor to the extent it is a defense to a simple contract;2. Duress, lack of legal capacity, or illeg…

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…

(1) In this section, the term:(a) “Fiduciary” means an agent, trustee, partner, corporate officer or director, or other representative owing a fiduciary duty with respect to an instrument.(b) “Represented person” means the principal, beneficiary, partnership, corporation, or othe…

(1) 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. If the validity of a signature is denied in the pleadings, the burden of establishing validity is …

(1) A person not in possession of an instrument is entitled to enforce the instrument if:(a) The person seeking to enforce the instrument was entitled to enforce the instrument when loss of possession occurred, or has directly or indirectly acquired ownership of the instrument fr…

(1) 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…

(1) If a person against whom a claim is asserted proves that that person in good faith tendered an instrument to the claimant as full satisfaction of the claim, that the amount of the claim was unliquidated or subject to a bona fide dispute, and that the claimant obtained payment…

(1) In this section, the term:(a) “Check” means a cashier’s check, teller’s check, or certified check.(b) “Claimant” means a person who claims the right to receive the amount of a cashier’s check, teller’s check, or certified check that was lost, destroyed, or stolen.(c) “Declara…

A person is not liable on an instrument unless the person signed the instrument or the person is represented by an agent or representative who signed the instrument, and the signature is binding on the represented person under s. 673.4021.History.—s. 2, ch. 92-82; s. 51, ch. 2025…

(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 s…

(1) Unless otherwise provided in this chapter or chapter 674, 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 fo…

(1) If an impostor, by use of the mails or otherwise, induces the issuer 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 payee, an indo…

(1) In this section, the term:(a) “Employee” includes an independent contractor retained by the employer and also includes an employee of an independent contractor retained by the employer.(b) “Fraudulent indorsement” means:1. In the case of an instrument payable to the employer,…

(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 instrum…

(1) The term “alteration” means:(a) An unauthorized change in an instrument which change purports to modify in any respect the obligation of a party; or(b) An unauthorized addition of words or numbers or other change to an incomplete instrument which addition or change relates to…

A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee which are available for its payment, and the drawee is not liable on the instrument until the drawee accepts it.History.—s. 2, ch. 92-82.

(1) The term “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 pursuant to instructions …

(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 a draft are not varied by an acceptance to pay at a…

(1) In this section, the term “obligated bank” means:(a) The acceptor of a certified check; or(b) The issuer of a cashier’s check or teller’s check bought from the issuer.(2) If the obligated bank wrongfully refuses to pay a cashier’s check or certified check, wrongfully stops pa…

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…