§ 34.1-3-415 — Obligation of indorser

(a) Subject to subsections (b), (c), and (d) and to
section 34.1-3-419(d), if an instrument is dishonored, an
indorser is obliged to pay the amount due on the instrument (1)
according to the terms of the instrument at the time it was
indorsed, or (2) if the indorser indorsed an incomplete
instrument, according to its terms when completed, to the extent
stated in sections 34.1-3-115 and 34.1-3-407. 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) to pay the
instrument.
(c) If notice of dishonor of an instrument is required by
section 34.1-3-503 and notice of dishonor complying with that
section is not given to an indorser, the liability of the
indorser under subsection (a) is discharged.
(d) If a draft is accepted by a bank after an indorsement
is made, the liability of the indorser under subsection (a) is
discharged.
(e) If an indorser 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 indorsement was made, the liability of the indorser
under subsection (a) is discharged.