Title 70A, Title 70A: Uniform Commercial Code

70A-3-310. Effect of instrument on obligation for which taken. (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 t…

70A-3-311. Accord and satisfaction by use of instrument. (1) If a person against whom a claim is asserted proves that that person in good faith tendered an instrument to the claimant as full satisfaction of the claim, the amount of the claim was unliquidated or subject to a bona …

70A-3-312. Lost, destroyed, or stolen cashier's check, teller's check, or certified check. (1) In this section: "Check" means a cashier's check, teller's check, or certified check. "Claimant" means a person who claims the right to receive the amount of a cashier's check, teller's…

70A-3-401. Signature necessary for liability on instrument. 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 represent…

70A-3-402. Signature by representative. (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 re…

70A-3-403. Unauthorized signature. (1) Unless otherwise provided in this chapter or, 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 signa…

70A-3-404. Impostors -- Fictitious payees. (1) 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 pers…

70A-3-405. Employer's responsibility for fraudulent indorsement by employee. (1) In this section: "Employee" includes an independent contractor and employee of an independent contractor retained by the employer. "Fraudulent indorsement" means in the case of an instrument payable …

70A-3-406. Negligence contributing to forged signature or alteration of instrument. (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…

70A-3-407. Alteration. (1) "Alteration" means an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a part…

70A-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.

70A-3-409. Acceptance of draft -- Certified check. (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 noti…

70A-3-410. Acceptance varying draft. (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 n…

70A-3-411. Refusal to pay cashier's checks, teller's checks, and certified checks. (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) If the obligated bank wrongfully refus…

70A-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 according to its terms at the time it was issued or, if not issued, at the time it first came into possession of…

70A-3-413. Obligation of acceptor. (1) The acceptor of a draft is obliged to pay the draft 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, if the acceptance varies the terms…

70A-3-414. Obligation of drawer. (1) This section does not apply to cashier's checks or other drafts drawn on the drawer. (2) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft according to its terms at the time it was issued or, if not issued, at the ti…

70A-3-415. Obligation of indorser. (1) Subject to Subsections,, andand to Subsection, 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 a…

70A-3-416. Transfer warranties. (1) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee that: the warrantor is a person entitled to enforce the instrument; all signatures on the ins…

70A-3-417. Presentment warranties. (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…

70A-3-418. Payment or acceptance by mistake. (1) Except as provided in Subsection, if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that payment of the draft had not been stopped pursuant to Section, or the signature of the drawer of …

70A-3-419. Instruments signed for accommodation. (1) If an instrument is issued for value given for the benefit of a party to the instrument, the "accommodated party," and another party to the instrument, the "accommodation party," signs the instrument for the purpose of incurrin…

70A-3-420. Conversion of instrument. (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 obt…

70A-3-501. Presentment. (1) "Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument 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…

70A-3-502. Dishonor. (1) Dishonor of a note is governed by the following rules: 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. If the note is not payable on demand and is payabl…

70A-3-503. Notice of dishonor. (1) The obligation of an indorser stated in Subsectionand the obligation of a drawer stated in Subsectionmay not be enforced unless the indorser or drawer is given notice of dishonor of the instrument complying with this section or notice of dishono…

70A-3-504. Excused presentment and notice of dishonor. (1) Presentment for payment or acceptance of an instrument is excused if: the person entitled to present the instrument cannot with reasonable diligence make presentment; the maker or acceptor has repudiated an obligation to …

70A-3-505. Evidence of dishonor. (1) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated: a document regular in form as provided in Subsectionwhich purports to be a protest; (2) a purported stamp or writing of the dra…

70A-3-601. Discharge and effect of discharge. (1) The obligation of a party to pay the instrument is discharged as stated in this chapter or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract. (2) Discharge of the obliga…

70A-3-602. Payment. (1) Subject to Subsection, 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. To the extent of the payment, the obligation of the party obliged to pa…

70A-3-603. Tender of payment. (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 pay…

70A-3-604. Discharge by cancellation or renunciation. (1) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument by: an intentional voluntary act, such as surrender of the instrument to the party, d…

70A-3-605. Discharge of indorsers and accommodation parties. (1) In this section, the term "indorser" includes a drawer having the obligation described in Subsection. 70A-3-414(4) (2) Discharge, under Section, of the obligation of a party to pay an instrument does not discharge t…

70A-4-101. Short title. This chapter is known as "Uniform Commercial Code -- Bank Deposits and Collections."

70A-4-102. Applicability. (1) To the extent that items within this chapter are also within the scope ofand, they are subject to those chapters. If there is a conflict, this chapter governsandgoverns this chapter. Title 70A, Chapter 3, Uniform Commercial Code - Negotiable Instrume…

70A-4-103. Variation by agreement -- Measure of damages -- Certain action constituting ordinary care. (1) The effect of the provisions of this chapter may be varied by agreement but the parties to the agreement may not disclaim a bank's responsibility for its lack of good faith o…

70A-4-104. Definitions and index of definitions. (1) In this chapter, unless the context otherwise requires: "Account" means any deposit or credit account with a bank including a demand, time, savings, passbook, share draft, or similar account, other than the account evidenced by…

70A-4-105. "Bank" -- "Collecting bank" -- "Depositary bank" -- "Intermediary bank" -- "Payor bank" -- "Presenting bank." In this chapter: (1) "Bank" means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust c…

70A-4-106. Payable through or payable at bank -- Collecting bank. (1) If an item states that it is "payable through" a bank identified in the item: the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item; and the item may be pre…

70A-4-107. Separate office of a 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 notices or orders shall be given under this chapter and under.

70A-4-108. Time of receipt of items. (1) For the purpose of allowing time to process items, prove balances, and make the necessary entries on the 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 …

70A-4-109. Delays. (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 permi…

70A-4-110. Electronic presentment. (1) "Agreement for electronic presentment" means an agreement, clearinghouse rule, or Federal Reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information descr…

70A-4-111. Statute of limitations. An action to enforce an obligation, duty, or right arising under this chapter must be commenced within three years after the cause of action accrues.

70A-4-201. Status of collecting bank as agent and provisional status of credits -- Applicability of chapter -- Item indorsed "pay any bank." (1) Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes fin…

70A-4-202. Responsibility for collection or return -- When action timely. (1) A collecting bank must exercise ordinary care in: presenting an item or sending it for presentment; sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the ba…