§3-1310. Effect of instrument on obligation for which taken

Link to law: http://legislature.maine.gov/legis/statutes/11/title11sec3-1310.html
Published: 2015

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§3-1310. 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 the amount of the instrument were taken
in payment of the obligation. Discharge of the obligation does not affect any liability
that the obligor may have as an indorser of the instrument.


[
1993, c. 293, Pt. A, §2 (NEW)
.]








(2). 
 
Unless otherwise agreed and except as provided in subsection (1), if a note or an
uncertified check is taken for an obligation, the obligation is suspended to the same
extent the obligation would be discharged if an amount of money equal to the amount
of the instrument were taken and the following rules apply.





(a). In the case of an uncertified check, suspension of the obligation continues until
dishonor of the check or until it is paid or certified. Payment or certification
of the check results in discharge of the obligation to the extent of the amount of
the check. [1993, c. 293, Pt. A, §2 (NEW).]










(b). In the case of a note, suspension of the obligation continues until dishonor of
the note or until it is paid. Payment of the note results in discharge of the obligation
to the extent of the payment. [1993, c. 293, Pt. A, §2 (NEW).]










(c). Except as provided in paragraph (d), if the check or note is dishonored and the
obligee of the obligation for which the instrument was taken is the person entitled
to enforce the instrument, the obligee may enforce either the instrument or the obligation.
In the case of an instrument of a 3rd person that is negotiated to the obligee by
the obligor, discharge of the obligor on the instrument also discharges the obligation. [1993, c. 293, Pt. A, §2 (NEW).]










(d). If the person entitled to enforce the instrument taken for an obligation is a person
other than the obligee, the obligee may not enforce the obligation to the extent the
obligation is suspended. If the obligee is the person entitled to enforce the instrument
but no longer has possession of it because it was lost, stolen or destroyed, the obligation
may not be enforced to the extent of the amount payable on the instrument and to that
extent the obligee's rights against the obligor are limited to enforcement of the
instrument. [1993, c. 293, Pt. A, §2 (NEW).]







[
1993, c. 293, Pt. A, §2 (NEW)
.]








(3). 
 
If an instrument other than one described in subsection (1) or (2) is taken for
an obligation, the effect is:





(a). That effect stated in subsection (1) if the instrument is one on which a bank is
liable as maker or acceptor; or [1993, c. 293, Pt. A, §2 (NEW).]










(b). That effect stated in subsection (2) in any other case. [1993, c. 293, Pt. A, §2 (NEW).]







[
1993, c. 293, Pt. A, §2 (NEW)
.]





SECTION HISTORY

1993, c. 293, §A2 (NEW).