Title 30, Title 30

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…

A promise or order is "payable on demand" if: (1) it states that it is payable on demand or at sight or otherwise indicates that it is payable at the will of the holder; or (2) it does not state any time of payment.

(1) A promise or order is "payable at a definite time" if it is payable on elapse of a definite period of time after sight or acceptance or at a fixed date or dates or at a time or times readily ascertainable at the time the promise or order is issued, subject to the rights of: (…

(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…

(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 30-4-401(3), an instrument payable on demand is not payable before the date of the instrument. (2) If a…

(1) "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 (3), if …

Subject to applicable law regarding exclusion of proof of contemporaneous or prior 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 the …

(1) Except as provided in subsection (5), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within 6 years after the payment date or dates stated in the note or, if a payment date is accelerated, within 6 years after the acc…

(1) This chapter applies to negotiable instruments. It does not apply to money or to payment orders governed by chapter 4A. A negotiable instrument that is also a certificated security under 30-8-112(1)(d) is subject to chapter 8 and to this chapter. (2) In the event of conflict …

(1) "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 by the payee, the first transmission by the drawer to the payee of an image of a…

(1) A person to whom an instrument is payable is determined by the intent of the person, whether or not authorized, signing as, in the name of, or on behalf of the maker or drawer. The instrument is payable to the person intended by the signer even if that person is identified in…

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 no address is stated, the …

(1) Unless otherwise provided in the instrument, an instrument is not payable with interest and 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 may be …

If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers.

(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 are indorsing joint payees, or anomalous indorsers are jointly and severally liable in the capacity in which they sign…

In an action for breach of an obligation for which a third person is answerable over pursuant to this chapter or chapter 4, 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 ans…

(1) "Negotiation" means a transfer of possession, whether voluntary or involuntary, of an instrument to a person who thereby becomes its holder if possession is obtained from a person other than the issuer of the instrument. (2) Except for negotiation by a remitter, if an instrum…

(1) "Indorsement" means a signature, other than that of a 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 liability on the i…

(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, by negotiation or otherwise, to a former holder. A former holder that reacquires the instrument may cancel indorsements made after the reacquirer first became a holder of the instrument. If the cancellation causes the in…

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

(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, regardless of whether the transfer is a negotiation, vests in the…

"Person entitled to enforce" an instrument means the holder of an instrument, a nonholder in possession of the instrument who has the rights of a holder, or a person not in possession of the instrument who is entitled to enforce the instrument pursuant to 30-3-309. A person may b…

(1) Subject to subsection (3) and 30-3-105(4), "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 incomplete as t…

(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 that the promise has been performed; (b) the transferee acquires a security interest or other lien in the instrument other than a lien …

(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 bee…

(1) Except as stated in subsection (2), the right to enforce the obligation of a party to pay the instrument is subject to the following: (a) A defense of the obligor based on: (i) infancy of the obligor to the extent that it is a defense to a simple contract; (ii) duress, lack o…

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 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 on…

(1) This section applies if an instrument is taken from a fiduciary for payment or collection or for value, the taker has knowledge of the fiduciary status of the fiduciary, and the represented person makes a claim to the instrument or its proceeds on the basis that the transacti…

(1) A person not in possession of an instrument is entitled to enforce the instrument if: (a) that person was in rightful possession of the instrument and entitled to enforce it when loss of possession occurred; (b) the loss of possession was not the result of a voluntary transfe…

(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) This section applies if a person against whom a claim is asserted proves that: (a) that person in good faith tendered an instrument to the claimant as full satisfaction of the claim; (b) the amount of the claim was unliquidated or subject to a bona fide dispute; and (c) the c…

(1) In this section, the following definitions apply: (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, destroye…

A person is not liable on an instrument unless: (1) the person signed the instrument; or (2) the person is represented by an agent or representative who signed the instrument and the signature is binding on the represented person under 30-3-403.

(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, 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 for all purposes …

(1) If an impostor by use of the mails or otherwise induces the maker or drawer 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…

(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 instrumen…

(1) "Alteration" means: (a) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party to the instrument; or (b) an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of an…

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.

(1) "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 notification pursuant to instructions is given or the a…

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

(1) A maker of a note is obliged to pay the note: (a) 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 (b) if the maker signed an incomplete instrument, according to its terms when completed as stated in…

(1) Subject to subsections (2) through (4) and to 30-3-415(4), if an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument according to the terms of the instrument at the time it was indorsed or if the indorser indorsed an incomplete instrument,…