Title 34.1, Title 34.1 — Uniform Commercial Code

Presentment warranties. (a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (1) the person obtaining payment or acceptance, at the time of presentment, and (2) a previous transferor of the draft, at the time of…

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 (1) payment of the draft had not been stopped pursuant to section 34.1-4-403 or (2) the signature of the…

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 instrument for the purpose of incurring liability on the …

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 obtains paymen…

Presentment. (a) "Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument (1) 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 (2…

Dishonor. (a) Dishonor of a note is governed by the following rules: (i) 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; (ii) If the note is not payable on demand and is payable …

Notice of dishonor. (a) The obligation of an indorser stated in section 34.1-3-415(a) and the obligation of a drawer stated in section 34.1-3-414(d) may not be enforced unless (1) the indorser or drawer is given notice of dishonor of the instrument complying with this section or …

Excused presentment and notice of dishonor. (a) Presentment for payment or acceptance of an instrument is excused if (1) the person entitled to present the instrument cannot with reasonable diligence make presentment, (2) the maker or acceptor has repudiated an obligation to pay …

Evidence of dishonor. (a) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated: (i) A document regular in form as provided in subsection (b) which purports to be a protest; (ii) A purported stamp or writing of the draw…

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 a simple contract. (b) Discharge of the obligation of a p…

Payment. (a) Subject to subsection (b), an instrument is paid to the extent payment is made (1) by or on behalf of a party obliged to pay the instrument, and (2) to a person entitled to enforce the instrument. To the extent of the payment, the obligation of the party obliged to p…

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 under a simple contract. (b) If tender of payment of an …

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 (1) by an intentional voluntary act, such as surrender of the instrument to the party, destructi…

Discharge of indorsers and accommodation parties. (a) In this section, the term "indorser" includes a drawer having the obligation described in section 34.1-3-414(d). (b) Discharge, under section 34.1-3-604, of the obligation of a party to pay an instrument does not discharge the…

Repealed by Laws 1991, ch. 160, § 4. PART 8 MISCELLANEOUS

Repealed by Laws 1991, ch. 160, § 4. PART 9 REGISTERED CLEARING CORPORATIONS

Deposited instrument. (a) For purposes of this Part 9 a "deposited instrument" is an instrument which is: (i) In the custody of a registered clearing corporation, another clearing corporation, a foreign clearing corporation, a custodian bank, a foreign custodian bank or a nominee…

Variation of commercial paper provisions by agreement. (a) The effect of the provisions of this article on parties who are users or participants having a contractual relationship with a registered clearing corporation may be varied by agreement with respect to the transfer, pledg…

Transfer or pledge within a central depository system. (a) In addition to other methods, a transfer, pledge or release of a deposited instrument or any interest therein may be effected by the making of appropriate entries on the books of the registered clearing corporation having…

Presentment, dishonor, payment, or other activities within a central depository system. (a) If both parties for whom or with respect to which a deposited instrument is to be presented, dishonored, paid or otherwise acted upon or with respect to in a manner covered by this article…

Clearing corporation entitled to holder in due course status. (a) A registered clearing corporation can be a holder in due course with respect to a deposited instrument. (b) The initial entry of an instrument which otherwise meets the requirements of a deposited instrument by a r…