8.3A-414 - A-414. Obligation of drawer.
§ 8.3A-414. Obligation of drawer.
(a) This section does not apply to cashier's checks or other drafts drawn onthe drawer.
(b) If an unaccepted draft is dishonored, the drawer is obliged to pay thedraft (i) according to its terms at the time it was issued or, if not issued,at the time it first came into possession of a holder, or (ii) if the drawersigned an incomplete instrument, according to its terms when completed, tothe extent stated in §§ 8.3A-115 and 8.3A-407. The obligation is owed to aperson entitled to enforce the draft or to an endorser who paid the draftunder § 8.3A-415.
(c) If a draft is accepted by a bank, the drawer is discharged, regardless ofwhen or by whom acceptance was obtained.
(d) If a draft is accepted and the acceptor is not a bank, the obligation ofthe drawer to pay the draft if the draft is dishonored by the acceptor is thesame as the obligation of an endorser under § 8.3A-415 (a) and (c).
(e) If a draft states that it is drawn "without recourse" or otherwisedisclaims liability of the drawer to pay the draft, the drawer is not liableunder subsection (b) to pay the draft if the draft is not a check. Adisclaimer of the liability stated in subsection (b) is not effective if thedraft is a check.
(f) If (i) a check is not presented for payment or given to a depositary bankfor collection within thirty days after its date, (ii) the drawee suspendspayments after expiration of the thirty-day period without paying the check,and (iii) because of the suspension of payments, the drawer is deprived offunds maintained with the drawee to cover payment of the check, the drawer tothe extent deprived of funds may discharge its obligation to pay the check byassigning to the person entitled to enforce the check the rights of thedrawer against the drawee with respect to the funds.
(Code 1950, §§ 6-412 through 6-414, 6-471, 6-496, 6-497, 6-503, 6-505, 6-539,6-541 through 6-543; 1964, c. 219, §§ 8.3-411, 8.3-413, 8.3-502; 1992, c.693.)