Title 10, Commercial Laws
0 chapters · 458 sections in this title.
La. Rev. Stat. § 10:3-111 Place of payment
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§3-111. Place of payment Except as otherwise provided for items in Chapter 4, 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 n…
La. Rev. Stat. § 10:3-112 Interest
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§3-112. Interest (a) Unless otherwise provided in the instrument, (i) an instrument is not payable with interest, and (ii) interest on an interest-bearing instrument is payable from the date of the instrument. (b) Interest may be stated in an instrument as a fixed or variable amo…
La. Rev. Stat. § 10:3-113 Date of instrument
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§3-113. Date of instrument (a) 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 R.S. 10:4-401(c), an instrument payable on demand is not payable before the …
La. Rev. Stat. § 10:3-114 Contradictory terms of instrument
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§3-114. Contradictory terms of instrument If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers. Acts 1992, No. 1133, §3, eff. July 1, 1993; Acts 1993, No. 948, §10, eff. Ja…
La. Rev. Stat. § 10:3-115 Incomplete instrument
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§3-115. Incomplete instrument (a) "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. (b) …
La. Rev. Stat. § 10:3-116 Joint and several liability; contribution
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§3-116. Joint and several liability; contribution (a) 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 seve…
La. Rev. Stat. § 10:3-117 Other agreements affecting instrument
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§3-117. Other agreements affecting instrument 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 only by a separate written …
La. Rev. Stat. § 10:3-118 Prescription
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§3-118. Prescription (a) Except as provided in Subsection (e), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within five years after the due date or dates stated in the note or, if a due date is accelerated, within five …
La. Rev. Stat. § 10:3-119 REPEALED BY ACTS 1993, NO
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§3-119. REPEALED BY ACTS 1993, NO. 948, §7, EFF. JAN. 1, 1994.
La. Rev. Stat. § 10:3-201 Negotiation
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§3-201. Negotiation (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 its holder. (b) Except for negotiation by a remitter, if an instrument is payable to an ident…
La. Rev. Stat. § 10:3-202 Negotiation subject to rescission
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§3-202. Negotiation subject to rescission (a) Negotiation is effective even if obtained (i) from an infant, a corporation exceeding its powers, or a person without capacity, (ii) by fraud, duress, or mistake, or (iii) in breach of duty or as part of an illegal transaction. (b) To…
La. Rev. Stat. § 10:3-203 Transfer of instrument; rights acquired by transfer
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§3-203. Transfer of instrument; rights acquired by transfer (a) 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. (b) Transfer of an instrument, wheth…
La. Rev. Stat. § 10:3-204 Indorsement
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§3-204. Indorsement (a) "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 (i) negotiating the instrument, (ii) restricting payment of the instrument, or …
La. Rev. Stat. § 10:3-205 Special indorsement; blank indorsement; anomalous indorsement
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§3-205. Special indorsement; blank indorsement; anomalous indorsement (a) 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…
La. Rev. Stat. § 10:3-206 Restrictive indorsement
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§3-206. Restrictive indorsement (a) 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. (b) An indorsement stating a condit…
La. Rev. Stat. § 10:3-207 Reacquisition
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§3-207. Reacquisition 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 cancel…
La. Rev. Stat. § 10:3-301 Person entitled to enforce instrument
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§3-301. Person entitled to enforce instrument "Person entitled to enforce" an instrument means (i) the holder of the instrument, (ii) a nonholder in possession of the instrument who has the rights of a holder, or (iii) a person not in possession of the instrument who is entitled …
La. Rev. Stat. § 10:3-302 Holder in due course
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§3-302. Holder in due course (a) Subject to Subsection (c) and R.S. 10:3-106(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 otherwi…
La. Rev. Stat. § 10:3-303 Value and consideration
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§3-303. Value and consideration (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, or the holder has in good faith changed his position in reliance on it,…
La. Rev. Stat. § 10:3-304 Overdue instrument
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§3-304. Overdue instrument (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, …
La. Rev. Stat. § 10:3-305 Defenses and claims in recoupment
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§3-305. Defenses and claims in recoupment (a) Except as stated in Subsection (b), 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 (i) infancy of the obligor to the extent it is a defense to a s…
La. Rev. Stat. § 10:3-306 Claims to an instrument
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§3-306. Claims to an instrument 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 ins…
La. Rev. Stat. § 10:3-307 Notice of breach of fiduciary duty
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§3-307. Notice of breach of fiduciary duty (a) In this Section: (1) "Fiduciary" means an agent, trustee, partner, corporate officer or director, or other representative owing a fiduciary duty with respect to an instrument. (2) "Represented person" means the principal, beneficiary…
La. Rev. Stat. § 10:3-308 Proof of signatures and status as holder in due course
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§3-308. Proof of signatures and status as holder in due course (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. If the validity of a signature is d…
La. Rev. Stat. § 10:3-309 Enforcement of lost, destroyed, or stolen instrument
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§3-309. Enforcement of lost, destroyed, or stolen instrument (a) A person not in possession of an instrument is entitled to enforce the instrument if (i) the person was in possession of the instrument and entitled to enforce it when loss of possession occurred, (ii) the loss of p…
La. Rev. Stat. § 10:3-310 Effect of instrument on obligation for which taken
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§3-310. Effect of instrument on obligation for which taken (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 a…
La. Rev. Stat. § 10:3-311 Accord and satisfaction by use of instrument
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§3-311. Accord and satisfaction by use of instrument (a) If a person against whom a claim is asserted proves that (i) that person in good faith tendered an instrument to the claimant as full satisfaction of the claim, (ii) the amount of the claim was unliquidated or subject to a …
La. Rev. Stat. § 10:3-312 Lost, destroyed, or stolen cashier's check, teller's check, certified check, or money order
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§3-312. Lost, destroyed, or stolen cashier's check, teller's check, certified check, or money order (a) In this Section: (1) "Check" means a cashier's check, teller's check, certified check, or money order. (2) "Claimant" means a person who claims the right to receive the amount …
La. Rev. Stat. § 10:3-401 Signature necessary for liability on instrument
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§3-401. Signature necessary for liability on instrument A person is not liable on an instrument unless (i) the person signed the instrument, or (ii) the person is represented by an agent or representative who signed the instrument and the signature is binding on the represented p…
La. Rev. Stat. § 10:3-402 Signature by representative
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§3-402. Signature by representative (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 repres…
La. Rev. Stat. § 10:3-403 Unauthorized signature
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§3-403. Unauthorized signature (a) Unless otherwise provided in this Chapter or Chapter 4, 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…
La. Rev. Stat. § 10:3-404 Impostors; fictitious payees
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§3-404. Impostors; fictitious payees (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 to a person acting in concert with the impostor, by impersonating the payee of the instrument or a person aut…
La. Rev. Stat. § 10:3-405 Employer's responsibility for fraudulent indorsement by employee
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§3-405. Employer's responsibility for fraudulent indorsement by employee (a) In this Section: (1) "Employee" includes an independent contractor and employee of an independent contractor retained by the employer. (2) "Fraudulent indorsement" means (i) in the case of an instrument …
La. Rev. Stat. § 10:3-406 Negligence contributing to forged signature or alteration of instrument
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§3-406. Negligence contributing to forged signature or alteration of instrument (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…
La. Rev. Stat. § 10:3-407 Alteration
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§3-407. Alteration (a) "Alteration" means (i) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (ii) an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a…
La. Rev. Stat. § 10:3-408 Drawee not liable on unaccepted draft
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§3-408. Drawee not liable on unaccepted draft 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. Acts 1992, No. 1133, §3, eff…
La. Rev. Stat. § 10:3-409 Acceptance of draft; certified check
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§3-409. Acceptance of draft; certified check (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 notificati…
La. Rev. Stat. § 10:3-410 Acceptance varying draft
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§3-410. Acceptance varying draft (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 v…
La. Rev. Stat. § 10:3-411 Refusal to pay cashier's checks, teller's checks, and certified checks
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§3-411. Refusal to pay cashier's checks, teller's checks, and certified checks (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 (i) refus…
La. Rev. Stat. § 10:3-412 Obligation of issuer of note or cashier's check
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§3-412. Obligation of issuer of note or cashier's check The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument (i) according to its terms at the time it was issued or, if not issued, at the time it first came into possession of…
La. Rev. Stat. § 10:3-413 Obligation of acceptor
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§3-413. Obligation of acceptor (a) The acceptor of a draft is obliged to pay the draft (i) 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, (ii) if the acceptance varies the …
La. Rev. Stat. § 10:3-414 Obligation of drawer
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§3-414. Obligation of drawer (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 (i) according to its terms at the time it was issued or, if not issued, at the ti…
La. Rev. Stat. § 10:3-415 Obligation of indorser
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§3-415. Obligation of indorser (a) Subject to Subsections (b), (c), and (d) and to R.S. 10:3-419(d), if an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument (i) according to the terms of the instrument at the time it was indorsed, or (ii) if…
La. Rev. Stat. § 10:3-416 Transfer warranties
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§3-416. Transfer warranties (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…
La. Rev. Stat. § 10:3-417 Presentment warranties
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§3-417. Presentment warranties (a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining payment or acceptance, at the time of presentment, and (ii) a previous transferor of the draft, at the…
La. Rev. Stat. § 10:3-418 Payment or acceptance by mistake
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§3-418. Payment or acceptance by mistake (a) Except as provided in Subsection (c), if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that (i) payment of the draft had not been stopped pursuant to R.S. 10:4-403 or (ii) the signature of …
La. Rev. Stat. § 10:3-419 Instruments signed for accommodation
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§3-419. Instruments signed for accommodation (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 …
La. Rev. Stat. § 10:3-420 Conversion of instrument
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§3-420. Conversion of instrument (a) An instrument is converted when (i) a drawee to whom it is delivered for acceptance refuses to return it on demand; or (ii) any person to whom it is delivered for payment refuses on demand either to pay or to return it; or (iii) it is taken by…
La. Rev. Stat. § 10:3-501 Presentment
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§3-501. Presentment (a) "Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument (i) 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…
La. Rev. Stat. § 10:3-502 Dishonor
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§3-502. Dishonor (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 pa…