Title 13 — Uniform Commercial Code

(1) The maker or acceptor engages that he will pay the instrument according to its tenor at the time of his engagement or as completed pursuant to Section 3115 on incomplete instruments. (2) The drawer engages that upon dishonor of the draft and any necessary notice of dishonor o…

COL120106 (1) Unless the indorsement otherwise specifies (as by such words as Awithout recourse@) every indorser engages that upon dishonor and any necessary notice of dishonor and protest he will pay the instrument according to its tenor at the time of his indorsement to the hol…

(1) An accommodation party is one who signs the instrument in any capacity for the purpose of lending his name to another party to it. (2) When the instrument has been taken for value before it is due the accommodation party is liable in the capacity in which he has signed even t…

(1) Payment guaranteed or equivalent words added to a signature mean that the signer engages that if the instrument is not paid when due he will pay it according to its tenor without resort by the holder to any other party. (2) Collection guaranteed or equivalent words added to a…

(1) Any person who obtains payment or acceptance and any prior transferor warrants to a person who in good faith pays or accepts that (a) He has a good title to the instrument or is authorized to obtain payment or acceptance on behalf of one who has a good title; and (b) He has n…

Except for recovery of bank payments as provided in the division on bank deposits and collections (Division 4) and except for liability for breach of warranty on presentment under the preceding section, payment or acceptance of any instrument is final in favor of a holder in due …

(1) An instrument is converted when (a) A drawee to whom it is delivered for acceptance refuses to return it on demand; or (b) Any person to whom it is delivered for payment refuses on demand either to pay or to return it; or (c) It is paid on a forged indorsement. (2) In any act…

Necessary or Permissible. (1) Unless excused (Section 3511) presentment is necessary to charge secondary parties as follows: (a) Presentment for acceptance is necessary to charge the draw- er and indorsers of a draft where the draft so provides, or is payable elsewhere than at th…

(1) Where without excuse any necessary presentment or notice of dishonor is delayed beyond the time when it is due (a) Any indorser is discharged; and (b) Any drawer or the acceptor of a draft payable at a bank or the maker of a note payable at a bank who because the drawee or pa…

(1) Unless a different time is expressed in the instrument the time for any presentment is determined as follows: (a) Where an instrument is payable at or a fixed period after a stated date any presentment for acceptance must be made on or before the date it is payable; (b) Where…

(1) Presentment is a demand for acceptance or payment made upon the maker, acceptor, drawee or other payor by or on behalf of the holder. (2) Presentment may be made (a) By mail, in which event the time of presentment is determined by the time of receipt of the mail; or (b) Throu…

(1) The party to whom presentment is made may without dishonor require (a) Exhibition of the instrument; and (b) Reasonable identification of the person making presentment and evidence of his authority to make it if made for another; and (c) That the instrument be produced for ac…

(1) Acceptance may be deferred without dishonor until the close of the next business day following presentment. The holder may also in a good faith effort to obtain acceptance and without either dishonor of the instrument or discharge of secondary parties allow postponement of ac…

Presentment. . (1) An instrument is dishonored when (a) A necessary or optional presentment is duly made and due acceptance or payment is refused or cannot be obtained within the prescribed time or in case of bank collections the instrument is seasonably returned by the midnight …

(1) Notice of dishonor may be given to any person who may be liable on the instrument by or on behalf of the holder or any party who has himself received notice, or any other party who can be compelled to pay the instrument. In addition an agent or bank in whose hands the instrum…

(1) A protest is a certificate of dishonor made under the hand and seal of a United States consul or vice consul or a notary public or other person authorized to certify dishonor by the law of the place where dishonor occurs. It may be made upon information satisfactory to such p…

The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor therein shown: COL120106 (a) A document regular in form as provided in the preceding section which purports to be a protest; (b) The purported stamp or writing of the drawe…

Dishonor or Delay Therein. (1) Delay in presentment, protest or notice of dishonor is excused when the party is without notice that it is due or when the delay is caused by circumstances beyond his control and he exercises reasonable diligence after the cause of the delay ceases …

(1) The extent of the discharge of any party from liability on an instrument is governed by the sections on (a) Payment or satisfaction (Section 3603); or (b) Tender of payment (Section 3604); or (c) Cancellation or renunciation (Section 3605); or (d) Impairment of right of recou…

No discharge of any party provided by this division is effective against a subsequent holder in due course unless he has notice thereof when he takes the instrument.

(1) The liability of any party is discharged to the extent of his payment or satisfaction to the holder even though it is made with knowledge of a claim of another person to the instrument unless prior to such payment or satisfaction the person making the claim either supplies in…

COL120106 (1) Any party making tender of full payment to a holder when or after it is due is discharged to the extent of all subsequent liability for interest, costs and attorney's fees. (2) The holder's refusal of such tender wholly discharges any party who has a right of recour…

(1) The holder of an instrument may even without consideration discharge any party (a) In any manner apparent on the face of the instrument or the indorsement, as by intentionally canceling the instrument or the party5s signature by destruction or mutilation, or by striking out t…

(1) The holder discharges any party to the instrument to the extent that without such party's consent the holder (a) Without express reservation of rights releases or agrees not to sue any person against whom the party has to the knowledge of the holder a right of recourse or agr…

(1) A letter of advice is a drawer's communication to the drawee that a described draft has been drawn. (2) Unless otherwise agreed when a bank receives from another bank a letter of advice of an international sight draft the drawee bank may immediately debit the drawer's account…

(1) Where a draft is drawn in a set of parts, each of which is numbered and expressed to be an order only if no other part has been honored, the whole of the parts constitutes one draft but a taker of any part may become a holder in due course of the draft. (2) Any person who neg…

(1) Unless otherwise agreed where an instrument is taken for an underlying obligation. (a) The obligation is pro tanto discharged if a bank is drawer, maker or acceptor of the instrument and there is no recourse on the instrument against the underlying obligor; and (b) In any oth…

Where a defendant is sued for breach of an obligation for which a third person is answerable over under this division he 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 answerable over to …

The owner of an instrument which is lost, whether by destruction, theft or otherwise, may maintain an action in his own name and recover from any party liable thereon upon due proof of his ownership, the facts which prevent his production of the instrument and its terms. The cour…

This division applies to any instrument whose terms do not preclude transfer and which is otherwise negotiable within this division but which is not payable to order or to bearer, except that there can be no holder in due course of such an instrument. ---------- COL120106