Title UCC, Uniform Commercial Code

Section 3--114. Date, Antedating, Postdating.\n (1) The negotiability of an instrument is not affected by the fact\nthat it is undated, antedated or postdated.\n (2) Where an instrument is antedated or postdated the time when it is\npayable is determined by the stated date if the…

Section 3--115. Incomplete Instruments.\n (1) When a paper whose contents at the time of signing show that it is\nintended to become an instrument is signed while still incomplete in any\nnecessary respect it cannot be enforced until completed, but when it is\ncompleted in accord…

Section 3--116. Instruments Payable to Two or More Persons.\n An instrument payable to the order of two or more persons\n (a) if in the alternative is payable to any one of them and may be\nnegotiated, discharged or enforced by any of them who has possession of\nit;\n (b) if not …

Section 3--117. Instruments Payable With Words of Description.\n An instrument made payable to a named person with the addition of\nwords describing him\n (a) as agent or officer of a specified person is payable to his\nprincipal but the agent or officer may act as if he were the…

Section 3--118. Ambiguous Terms and Rules of Construction.\n The following rules apply to every instrument:\n (a) Where there is doubt whether the instrument is a draft or a note\nthe holder may treat it as either. A draft drawn on the drawer is\neffective as a note.\n (b) Handwr…

Section 3--119. Other Writings Affecting Instrument.\n (1) As between the obligor and his immediate obligee or any transferee\nthe terms of an instrument may be modified or affected by any other\nwritten agreement executed as a part of the same transaction, except\nthat a holder …

Section 3--120. Instruments "Payable Through" Bank.\n An instrument which states that it is "payable through" a bank or the\nlike designates that bank as a collecting bank to make presentment but\ndoes not of itself authorize the bank to pay the instrument.\n

Section 3--121. Instruments Payable at Bank.\n A note or acceptance which states that it is payable at a bank is the\nequivalent of a draft drawn on the bank payable when it falls due out of\nany funds of the maker or acceptor in current account or otherwise\navailable for such p…

Section 3--122. Accrual of Cause of Action.\n (1) A cause of action against a maker or an acceptor accrues\n (a) in the case of a time instrument on the day after maturity;\n (b) in the case of a demand instrument upon its date or, if no\n date is stated, on the date of issue.\n …

Section 3--201. Transfer: Right to Indorsement.\n (1) Transfer of an instrument vests in the transferee such rights as\nthe transferor has therein, except that a transferee who has himself\nbeen a party to any fraud or illegality affecting the instrument or who\nas a prior holde…

Section 3--202. Negotiation.\n (1) Negotiation is the transfer of an instrument in such form that the\ntransferee becomes a holder. If the instrument is payable to order it is\nnegotiated by delivery with any necessary indorsement; if payable to\nbearer it is negotiated by deliv…

Section 3--203. Wrong or Misspelled Name.\n Where an instrument is made payable to a person under a misspelled\nname or one other than his own he may indorse in that name or his own or\nboth; but signature in both names may be required by a person paying or\ngiving value for the …

Section 3--204. Special Indorsement; Blank Indorsement.\n (1) A special indorsement specifies the person to whom or to whose\norder it makes the instrument payable. Any instrument specially indorsed\nbecomes payable to the order of the special indorsee and may be further\nnegotia…

Section 3--205. Restrictive Indorsements.\n An indorsement is restrictive which either\n (a) is conditional; or\n (b) purports to prohibit further transfer of the instrument; or\n (c) includes the words "for collection", "for deposit", "pay any\nbank", or like terms signifying a …

Section 3--206. Effect of Restrictive Indorsement.\n (1) No restrictive indorsement prevents further transfer or\nnegotiation of the instrument.\n (2) An intermediary bank, or a payor bank which is not the depositary\nbank, is neither given notice nor otherwise affected by a rest…

Section 3--207. Negotiation Effective Although It May Be Rescinded.\n (1) Negotiation is effective to transfer the instrument although the\nnegotiation is\n (a) made by an infant, a corporation exceeding its powers, or any\n other person without capacity; or\n (b) obtained by fra…

Section 3--208. Reacquisition.\n Where an instrument is returned to or reacquired by a prior party he\nmay cancel any indorsement which is not necessary to his title and\nreissue or further negotiate the instrument, but any intervening party\nis discharged as against the reacquir…

Section 3--301. Rights of a Holder.\n The holder of an instrument whether or not he is the owner may\ntransfer or negotiate it and, except as otherwise provided in Section\n3--603 on payment or satisfaction, discharge it or enforce payment in\nhis own name.\n

Section 3--302. Holder in Due Course.\n (1) A holder in due course is a holder who takes the instrument\n (a) for value; and\n (b) in good faith; and\n (c) without notice that it is overdue or has been dishonored or\n of any defense against or claim to it on the part of any\n per…

Section 3--303. Taking for Value.\n A holder takes the instrument for value\n (a) to the extent that the agreed consideration has been performed or\nthat he acquires a security interest in or a lien on the instrument\notherwise than by legal process; or\n (b) when he takes the in…

Section 3--304. Notice to Purchaser.\n (1) The purchaser has notice of a claim or defense if\n (a) the instrument is so incomplete, bears such visible evidence\n of forgery or alteration, or is otherwise so irregular as to\n call into question its validity, terms or ownership or …

Section 3--305. Rights of a Holder in Due Course.\n To the extent that a holder is a holder in due course he takes the\ninstrument free from\n (1) all claims to it on the part of any person; and\n (2) all defenses of any party to the instrument with whom the holder\nhas not dealt…

Section 3--306. Rights of One Not Holder in Due Course.\n Unless he has the rights of a holder in due course any person takes\nthe instrument subject to\n (a) all valid claims to it on the part of any person; and\n (b) all defenses of any party which would be available in an acti…

Section 3--307. Burden of Establishing Signatures, Defenses and Due\n Course.\n (1) Unless specifically denied in the pleadings each signature on an\ninstrument is admitted. When the effectiveness of a signature is put in\nissue\n (a) the burden of establishing it is on the party…

Section 3--401. Signature.\n (1) No person is liable on an instrument unless his signature appears\nthereon.\n (2) A signature is made by use of any name, including any trade or\nassumed name, upon an instrument, or by any word or mark used in lieu of\na written signature.\n

Section 3--402. Signature in Ambiguous Capacity.\n Unless the instrument clearly indicates that a signature is made in\nsome other capacity it is an indorsement.\n

Section 3--403. Signature by Authorized Representative.\n (1) A signature may be made by an agent or other representative, and\nhis authority to make it may be established as in other cases of\nrepresentation. No particular form of appointment is necessary to\nestablish such auth…

Section 3--404. Unauthorized Signatures.\n (1) Any unauthorized signature is wholly inoperative as that of the\nperson whose name is signed unless he ratifies it or is precluded from\ndenying it; but it operates as the signature of the unauthorized signer\nin favor of any person …

Section 3--405. Impostors; Signature in Name of Payee.\n (1) An indorsement by any person in the name of a named payee is\neffective if\n (a) an impostor by use of the mails or otherwise has induced the\n maker or drawer to issue the instrument to him or his\n confederate in the …

Section 3--406. Negligence Contributing to Alteration or Unauthorized\n Signature.\n Any person who by his negligence substantially contributes to a\nmaterial alteration of the instrument or to the making of an\nunauthorized signature is precluded from asserting the alteration or…

Section 3--407. Alteration.\n (1) Any alteration of an instrument is material which changes the\ncontract of any party thereto in any respect, including any such change\nin\n (a) the number or relations of the parties; or\n (b) an incomplete instrument, by completing it otherwise…

Section 3--408. Consideration.\n Want or failure of consideration is a defense as against any person\nnot having the rights of a holder in due course (Section 3--305), except\nthat no consideration is necessary for an instrument or obligation\nthereon given in payment of or as se…

Section 3--409. Draft Not an Assignment.\n (1) A check or other draft does not of itself operate as an assignment\nof any funds in the hands of the drawee available for its payment, and\nthe drawee is not liable on the instrument until he accepts it.\n (2) Nothing in this section…

Section 3--410. Definition and Operation of Acceptance.\n (1) Acceptance is the drawee's signed engagement to honor the draft as\npresented. It must be written on the draft, and may consist of his\nsignature alone. It becomes operative when completed by delivery or\nnotification.…

Section 3--411. Certification of a Check.\n (1) Certification of a check is acceptance. Where a holder procures\ncertification the drawer and all prior indorsers are discharged.\n (2) Unless otherwise agreed a bank has no obligation to certify a\ncheck.\n (3) A bank may certify a…

Section 3--412. Acceptance Varying Draft.\n (1) Where the drawee's proffered acceptance in any manner varies the\ndraft as presented the holder may refuse the acceptance and treat the\ndraft as dishonored in which case the drawee is entitled to have his\nacceptance cancelled.\n (…

Section 3--413. Contract of Maker, Drawer and Acceptor.\n (1) The maker or acceptor engages that he will pay the instrument\naccording to its tenor at the time of his engagement or as completed\npursuant to Section 3--115 on incomplete instruments.\n (2) The drawer engages that u…

Section 3--414. Contract of Indorser; Order of Liability.\n (1) Unless the indorsement otherwise specifies (as by such words as\n"without recourse") every indorser engages that upon dishonor and any\nnecessary notice of dishonor and protest he will pay the instrument\naccording t…

Section 3--415. Contract of Accommodation Party.\n (1) An accommodation party is one who signs the instrument in any\ncapacity for the purpose of lending his name to another party to it.\n (2) When the instrument has been taken for value before it is due the\naccommodation party …

Section 3--416. Contract of Guarantor.\n (1) "Payment guaranteed" or equivalent words added to a signature mean\nthat the signer engages that if the instrument is not paid when due he\nwill pay it according to its tenor without resort by the holder to any\nother party.\n (2) "Col…

Section 3--417. Warranties on Presentment and Transfer.\n (1) Any person who obtains payment or acceptance and any prior\ntransferor warrants to a person who in good faith pays or accepts that\n (a) he has a good title to the instrument or is authorized to\n obtain payment or acc…

Section 3--418. Finality of Payment or Acceptance.\n Except for recovery of bank payments as provided in the Article on\nBank Deposits and Collections (Article 4) and except for liability for\nbreach of warranty on presentment under the preceding section, payment\nor acceptance o…

Section 3--419. Conversion of Instrument; Innocent Representative.\n (1) An instrument is converted when\n (a) a drawee to whom it is delivered for acceptance refuses to\n return it on demand; or\n (b) any person to whom it is delivered for payment refuses on\n demand either to p…

Section 3--501. When Presentment, Notice of Dishonor, and Protest\n Necessary or Permissible.\n (1) Unless excused (Section 3--511) presentment is necessary to charge\nsecondary parties as follows:\n (a) presentment for acceptance is necessary to charge the drawer\n and indorsers…

Section 3--502. Unexcused Delay; Discharge.\n (1) Where without excuse any necessary presentment or notice of\ndishonor is delayed beyond the time when it is due\n (a) any indorser is discharged; and\n (b) any drawer or the acceptor of a draft payable at a bank or the\nmaker of a…

Section 3--503. Time of Presentment.\n (1) Unless a different time is expressed in the instrument the time\nfor any presentment is determined as follows:\n (a) where an instrument is payable at or a fixed period after a\n stated date any presentment for acceptance must be made on…

Section 3--504. How Presentment Made.\n (1) Presentment is a demand for acceptance or payment made upon the\nmaker, acceptor, drawee or other payor by or on behalf of the holder.\n (2) Presentment may be made\n (a) by mail, in which event the time of presentment is determined\n b…

Section 3--505. Rights of Party to Whom Presentment Is Made.\n (1) The party to whom presentment is made may without dishonor require\n (a) exhibition of the instrument; and\n (b) reasonable identification of the person making presentment\n and evidence of his authority to make i…

Section 3--506. Time Allowed for Acceptance or Payment.\n (1) Acceptance may be deferred without dishonor until the close of the\nnext business day following presentment. The holder may also in a good\nfaith effort to obtain acceptance and without either dishonor of the\ninstrume…

Section 3--507. Dishonor; Holder's Right of Recourse; Term Allowing\n Re-Presentment.\n (1) An instrument is dishonored when\n (a) a necessary or optional presentment is duly made and due\n acceptance or payment is refused or cannot be obtained within\n the prescribed time or in …