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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

003

:
Commercial Paper











 

§

3-415. Obligation of indorser

(a) Subject to

subsections (b), (c), (d), and (e) of this section and to section 3-419(d) of

this title, if an instrument is dishonored, an indorser is obliged to pay the

amount due on the instrument (i) according to the terms of the instrument at

the time it was indorsed, or (ii) if the indorser indorsed an incomplete

instrument, according to its terms when completed, to the extent stated in

sections 3-115 and 3-407 of this title. The obligation of the indorser is owed to

a person entitled to enforce the instrument or to a subsequent indorser who

paid the instrument under this section.

(b) If an

indorsement states that it is made "without recourse" or otherwise

disclaims liability of the indorser, the indorser is not liable under

subsection (a) of this section to pay the instrument.

(c) If notice of

dishonor of an instrument is required by section 3-503 of this title and notice

of dishonor complying with that section is not given to an indorser, the

liability of the indorser under subsection (a) of this section is discharged.

(d) If a draft

is accepted by a bank after an indorsement is made, the liability of the

indorser under subsection (a) of this section is discharged.

(e) If an

indorser of a check is liable under subsection (a) of this section and the

check is not presented for payment, or given to a depositary bank for

collection, within 30 days after the day the indorsement was made, the

liability of the indorser under subsection (a) of this section is discharged.

(Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1, 1995.)