Title 11, Title 11

(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 a…

(1). 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. (2). The person asserting the right to enforce the check is entitled to compensation for expenses and loss of interest resul…

The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument: [PL 1993, c. 293, Pt. A, §2 (NEW).] (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).…

(1). The acceptor of a draft is obliged to pay the draft: (a). 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; [PL 1993, c. 293, Pt. A, §2 (NEW).] (b). If the acceptance var…

(1). This section does not apply to cashier's checks or other drafts drawn on the drawer. (2). When an unaccepted draft is dishonored, the drawer is obliged to pay the draft: (a). According to its terms at the time it was issued or, if not issued, at the time it first came into p…

(1). Subject to subsections (2), (3), (4) and (5) and to section 3‑1419, subsection (4), when an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument: (a). According to the terms of the instrument at the time it was indorsed; or [PL 1993, c. 29…

(1). A person who transfers an instrument for consideration shall warrant to the transferee and, if the transfer is by indorsement, to any subsequent transferee that: (a). The warrantor is a person entitled to enforce the instrument; [PL 1993, c. 293, Pt. A, §2 (NEW).] (b). All s…

(1). 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 drawe…

(1). Except as provided in subsection (3), the drawee may recover the amount of the draft from the person to whom or for whose benefit payment was made or, in the case of acceptance, may revoke the acceptance if the drawee of a draft pays or accepts the draft and the drawee acted…

(1). If an instrument is issued for value given for the benefit of a party to the instrument, in this section referred to as the "accommodated party," and another party to the instrument, in this section referred to as the "accommodation party," signs the instrument for the purpo…

(1). 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 ins…

(1). "Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument: (a). 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 [PL 1993, c.…

(1). Dishonor of a note is governed by the following rules. (a). 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. [PL 1993, c. 293, Pt. A, §2 (NEW).] (b). If the note is not payab…

(1). The obligation of an indorser stated in section 3‑1415, subsection (1) and the obligation of a drawer stated in section 3‑1414, subsection (4) may not be enforced unless: (a). The indorser or drawer is given notice of dishonor of the instrument complying with this section; o…

(1). Presentment for payment or acceptance of an instrument is excused if: (a). The person entitled to present the instrument can not with reasonable diligence make presentment; [PL 1993, c. 293, Pt. A, §2 (NEW).] (b). The maker or acceptor has repudiated an obligation to pay the…

(1). The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated: (a). A document regular in form as provided in subsection (2) which purports to be a protest; [PL 1993, c. 293, Pt. A, §2 (NEW).] (b). A purported stamp or wri…

(1). The obligation of a party to pay the instrument is discharged as stated in this Article or by an act or agreement with the party that would discharge an obligation to pay money under a simple contract. (2). Discharge of the obligation of a party is not effective against a pe…

(1). Subject to subsection (2), an instrument is paid to the extent payment is made: (a). By or on behalf of a party obliged to pay the instrument; and [PL 1993, c. 293, Pt. A, §2 (NEW).] (b). To a person entitled to enforce the instrument. [PL 1993, c. 293, Pt. A, §2 (NEW).] To …

(1). 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. (2). If tender of payment of an obligation to pay…

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

(1). In this section, the term "indorser" includes a drawer having the obligation described in section 3‑1414, subsection (4). (2). Discharge, under section 3‑1604, of the obligation of a party to pay an instrument does not discharge the obligation of an indorser or accommodation…

This Article may be cited as "Uniform Commercial Code -- Bank Deposits and Collections."

(1). To the extent that items within this Article are also within Articles 3‑A and 8, they are subject to those Articles. If there is conflict, this Article governs Article 3‑A, but Article 8 governs this Article. (2). The liability of a bank for action or nonaction with respect …

(1). The effect of the provisions of this Article may be varied by agreement, but the parties to the agreement can not 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…

(1). In this Article, unless the context otherwise indicates, the following terms have the following meanings. (a). Account. "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 …

In this Article, unless the context otherwise indicates, the following terms have the following meanings. [PL 1993, c. 293, Pt. B, §10 (AMD).] (1). Depositary bank. "Depositary bank" means the first bank to take an item even though it is also the payor bank, unless the item is pr…

(1). If an item states that it is "payable through" a bank identified in the item: (a). The item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item; and [PL 1993, c. 293, Pt. B, §11 (NEW).] (b). The item may be presented for payment…

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 Article and under Article 3‑A.

(1). 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 2 p.m. or later as a cutoff hour for the handling of money and items and the making of ent…

(1). 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 f…

(1). "Agreement for electronic presentment" means an agreement, clearinghouse rule or Federal Reserve regulation or operating circular that provides that presentment of an item may be made by transmission of an image of an item or information describing that item, that is, a "pre…

This Article is known and may be cited as the "Uniform Commercial Code - Funds Transfers."

Except as otherwise provided in section 4‑1109, this Article applies to funds transfers defined in section 4‑1104.

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

In this Article: (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 b…

(1). In this Article: (a). "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 a…

(1). 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 1‑1202. A receiving bank may fix a cut-off time or times on a funds transfer business day for the rec…

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 Article to the extent of the inconsistency.

(1). Except as provided in subsection (2), this Article does not apply to a funds transfer any part of which is governed by the Electronic Fund Transfer Act of 1978, Title XX, Public Law 95-630, 92 Stat. 3728, 15 United States Code, Section 1693 et seq., as amended. (2). This Art…

An action to enforce an obligation, duty or right arising under this Article must be commenced within 3 years after the cause of action accrues.

"Security procedure" means a procedure established by agreement of a customer and a receiving bank for the purpose of: [PL 1991, c. 812, §2 (NEW).] (1). Verifying that a payment order or communication amending or cancelling a payment order is that of the customer; or (2). Detecti…

(1). A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under the law of agency. (2). If a bank and its customer have agreed that the authenticity of payment ord…

(1). If an accepted payment order is not under section 4‑1202, subsection (1) an authorized order of a customer identified as sender but is effective as an order of the customer pursuant to section 4‑1202, subsection (2), the following rules apply. (a). By express agreement, evid…

(1). If a receiving bank accepts a payment order issued in the name of its customer as sender that is not authorized and not effective as the order of the customer under section 4‑1202 or not enforceable in whole or in part, against the customer under section 4‑1203, the bank sha…

(1). If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order erroneously instructed payment to a beneficiary not intended by the sender, erroneously instructed payment in an amount greater than the amount inte…

(1). If a payment order addressed to a receiving bank is transmitted to a funds transfer system or other 3rd-party communication system for transmittal to the bank, the system is deemed to be an agent of the sender for the purpose of transmitting the payment order to the bank. If…