§ 26-1-3.1-415 — Obligation of endorser

Indiana § 26-1-3.1-415

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 3.1: Negotiable Instruments

Text

(a) Subject to subsections (b), (c), and (d)
and to IC 26-1-3.1-419(d), if an instrument is dishonored, an endorser
is obliged to pay the amount due on the instrument:
(1) according to the terms of the instrument at the time it was
endorsed; or
(2) if the endorser endorsed an incomplete instrument, according
to its terms when completed, to the extent stated in IC 26-1-3.1-115 and IC 26-1-3.1-407.
The obligation of the endorser is owed to a person entitled to enforce
the instrument or to a subsequent endorser who paid the instrument
under this section.
(b) If an endorsement states that it is made "without recourse" or
otherwise disclaims liability of the endorser, the endorser is not liable
under subsection (a) to pay the instrument.
(c) If notice of dishonor of an instrument is required by IC 26-1-3.1-503 and notice of dishonor complying with that section is not
given to an endorser, the liability of the endorser under subsection (a)
is discharged.
(d) If a draft is accepted by a bank after an endorsement is made, the
liability of the endorser under subsection (a) is discharged.
(e) If an endorser of a check is liable under subsection (a) and the
check is not presented for payment, or given to a depositary bank for
collection, within thirty (30) days after the day the endorsement was
made, the liability of the endorser under subsection (a) is discharged.

Legislative History

As added by P.L.222-1993, SEC.5.