Sec. 42a-3-105. Issue of instrument. - Connecticut Statutes

      Sec. 42a-3-105. Issue of instrument. (a) "Issue" means the first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for the purpose of giving rights on the instrument to any person.

      (b) An unissued instrument, or an unissued incomplete instrument that is completed, is binding on the maker or drawer, but nonissuance is a defense. An instrument that is conditionally issued or is issued for a special purpose is binding on the maker or drawer, but failure of the condition or special purpose to be fulfilled is a defense.

      (c) "Issuer" applies to issued and unissued instruments and means a maker or drawer of an instrument.

      (1959, P.A. 133, S. 3-105; 1963, P.A. 526, S. 3; P.A. 91-304, S. 5.)

      History: 1963 act specified that promise or order is not made conditional by fact that instrument refers to a separate agreement for rights as to prepayment or acceleration in Subdiv. (c); P.A. 91-304 entirely replaced former provisions re unconditional promise or order with provisions re issue of an instrument.

      See Sec. 42a-3-106(a) and (b)(ii) for successor provisions to Sec. 42a-3-105, revised to 1991, re unconditional promise or order.

      Annotations to former statute (1958 Rev., S. 39-4):

      Order to pay what may be due on a specified book is conditional and not negotiable. 73 C. 572; 93 C. 395. Where trade acceptance stated time of payment, held that reference to maturity of purchase contract was a mere statement of the transaction. 126 C. 37.

      Annotations to present section:

      Cited. 149 C. 159.

      Notes nonnegotiable because "subject to a subordination agreement dated October 13, 1965" were each transferable or assignable and each was property subject of separate count in one pleading by plaintiff holder upon the default of defendant payor. 6 Conn. Cir. Ct. 28.