Title Minnesota Statutes, Minnesota Statutes

336.3-305 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-305 DEFENSES AND CLAIMS IN RECOUPMENT. (a) Except as otherwise provided in this section, 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)…

336.3-306 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-306 CLAIMS TO AN INSTRUMENT.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 cla…

336.3-307 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-307 NOTICE OF BREACH OF FIDUCIARY DUTY.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) "Re…

336.3-308 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 i…

336.3-309 ENFORCEMENT OF LOST, DESTROYED, OR STOLEN INSTRUMENT. (a) A person not in possession of an instrument is entitled to enforce the instrument if (1) the person seeking to enforce the instrument (A) was entitled to enforce the instrument when loss of possession occurred, o…

336.3-310 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 th…

336.3-311 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…

336.3-312 LOST, DESTROYED, OR STOLEN CASHIER'S CHECK, TELLER'S CHECK, OR CERTIFIED CHECK. (a) In this section: (1) "Check" means a cashier's check, teller's check, or certified check. (2) "Claimant" means a person who claims the right to receive the amount of a cashier's check, t…

336.3-401 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-401 SIGNATURE NECESSARY FOR LIABILITY ON INSTRUMENT.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…

336.3-402 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-402 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 bo…

336.3-403 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-403 UNAUTHORIZED SIGNATURE. (a) Unless otherwise provided in this article or article 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…

336.3-404 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-404 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 imperso…

336.3-405 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-405 EMPLOYER'S RESPONSIBILITY FOR FRAUDULENT ENDORSEMENT BY EMPLOYEE. (a) In this section: (1) "Employee" includes an independent contractor and employee of an independent contractor retained by the employer. (2) "Fraudulent en…

336.3-406 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-406 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 signatur…

336.3-407 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-407 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 inc…

336.3-408 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-408 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 t…

336.3-409 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-409 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…

336.3-410 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-410 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 …

336.3-411 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-411 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 issu…

336.3-412 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-412 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 is…

336.3-413 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-413 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 eq…

336.3-414 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-414 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 t…

336.3-415 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-415 OBLIGATION OF ENDORSER. (a) Subject to subsections (b), (c), and (d) and to section 336.3-419(d), if an instrument is dishonored, an endorser is obliged to pay the amount due on the instrument (i) according to the terms of …

336.3-416 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-416 TRANSFER WARRANTIES. (a) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by endorsement, to any subsequent transferee that: (1) the warrantor is a person entitled to…

336.3-417 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-417 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, a…

336.3-418 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-418 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 p…

336.3-419 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-419 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 …

336.3-420 CONVERSION OF INSTRUMENT. (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 obta…

336.3-501 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-501 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 not…

336.3-502 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-502 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. …

336.3-503 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-503 NOTICE OF DISHONOR. (a) The obligation of an endorser stated in section 336.3-415(a) and the obligation of a drawer stated in section 336.3-414(d) may not be enforced unless (i) the endorser or drawer is given notice of dis…

336.3-504 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-504 EXCUSED PRESENTMENT AND NOTICE OF DISHONOR. (a) Presentment for payment or acceptance of an instrument is excused if (i) the person entitled to present the instrument cannot with reasonable diligence make presentment, (ii) …

336.3-505 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-505 EVIDENCE OF DISHONOR. (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…

336.3-601 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-601 DISCHARGE AND EFFECT OF DISCHARGE. (a) 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 which would discharge an obligation to pay money under …

336.3-602 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-602 PAYMENT. (a) Subject to subsection (e), 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. (b) Subject to subsec…

336.3-603 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-603 TENDER OF PAYMENT. (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…

336.3-604 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-604 DISCHARGE BY CANCELLATION OR RENUNCIATION. (a) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument (i) by an intentional voluntary act, su…

336.3-605 MS 1990 [Repealed, 1992 c 565 s 114] 336.3-605 DISCHARGE OF SECONDARY OBLIGORS. (a) If a person entitled to enforce an instrument releases the obligation of a principal obligor in whole or in part, and another party to the instrument is a secondary obligor with respect …

336.4-101 SHORT TITLE. This article may be cited as Uniform Commercial Code - Bank Deposits and Collections. History: 1965 c 811 s 336.4-101; 1992 c 565 s 72

336.4-102 APPLICABILITY. (a) To the extent that items within this article are also within articles 3 and 8, they are subject to those articles. If there is conflict, this article governs article 3, but article 8 governs this article. (b) The liability of a bank for action or nona…

336.4-103 VARIATION BY AGREEMENT; MEASURE OF DAMAGES; ACTION CONSTITUTING ORDINARY CARE. (a) The effect of the provisions of this article 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 …

336.4-104 DEFINITIONS AND INDEX OF DEFINITIONS. (a) In this article, 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…

336.4-105 "BANK"; "DEPOSITARY BANK"; "INTERMEDIARY BANK"; "COLLECTING BANK"; "PAYOR BANK"; "PRESENTING BANK". In this article: (1) "Bank" means a person engaged in the business of banking, including a savings bank, savings association, credit union, or trust company. (2) "Deposit…

336.4-106 MS 1990 [Renumbered 336.4-107] 336.4-106 PAYABLE THROUGH OR PAYABLE AT BANK; COLLECTING BANK. (a) If an item states that it is "payable through" a bank identified in the item, (i) the item designates the bank as a collecting bank and does not by itself authorize the ban…

336.4-107 MS 1990 [Renumbered 336.4-108] 336.4-107 SEPARATE OFFICE OF BANK. 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 notice or orders must be given u…

336.4-108 MS 1990 [Renumbered 336.4-109] 336.4-108 TIME OF RECEIPT OF ITEMS. (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 2:00 p.m. or …