Sec. 42a-3-415. Obligation of endorser. - Connecticut Statutes

      Sec. 42a-3-415. Obligation of endorser. (a) Subject to subsections (b) to (e), inclusive, of this section and to section 42a-3-419(d), if an instrument is dishonored, an endorser is obliged to pay the amount due on the instrument (i) according to the terms of the instrument at the time it was endorsed, or (ii) if the endorser endorsed an incomplete instrument, according to its terms when completed, to the extent stated in sections 42a-3-115 and 42a-3-407. 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 section 42a-3-503 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 days after the day the endorsement was made, the liability of the endorser under subsection (a) is discharged.

      (1959, P.A. 133, S. 3-415; P.A. 91-304, S. 52; P.A. 96-180, S. 123, 166.)

      History: P.A. 91-304 entirely replaced former provisions re contract of accommodation party with provisions re obligation of endorser, in part a restatement of Sec. 42a-3-414(1), revised to 1991; P.A. 96-180 made a technical change in Subsec. (a), effective June 3, 1996.

      See Sec. 42a-3-419(a), (b), (c) and (e) for successor provisions to Sec. 42a-3-415 (1), (2), (4) and (5), respectively, revised to 1991, re an accommodation party.

      Annotations to former statutes:

      (1958 Rev., S. 39-29): Accommodation maker cannot set up lack of consideration against one who acquires note even after maturity, unless payee has appropriated it to purpose not intended. 77 C. 636.

      (1958 Rev., S. 39-30): Accommodation endorsement by corporation held ultra vires. 50 C. 157; 85 C. 147. Right of accommodation endorser to reimbursement. 79 C. 449; 87 C. 104. Liability of such endorser. 85 C. 147; 92 C. 708; 93 C. 359; 97 C. 711. Right to contest usurious note. 102 C. 37. Cited. 109 C. 114; 140 C. 391. Liability of accommodation endorser to purchaser for value where instrument was transferred without payee's endorsement. 124 C. 177. Endorsement for accommodation must be before delivery. 129 C. 474.

      It is not material in an action brought by an endorsee that the accommodation maker received no consideration. 9 CS 322.

      Annotations to present section:

      Cited. 149 C. 164, 165. Cited. 203 C. 407. Cited. 218 C. 162. Cited. 240 C. 10. Cited. 242 C. 17.

      Cited. 26 CA 359.

      Former Subsec. (1):

      Cited. 210 C. 734.

      Cited. 33 CS 182. Wife may be accommodation maker for husband. 35 CS 82.

      Cited. 4 Conn. Cir. Ct. 214. Accommodation endorser's essential characteristic is that he is a surety and not that he has signed gratuitously. 5 Conn. Cir. Ct. 405.

      Former Subsec. (2):

      Cited. 179 C. 349. Cited. 193 C. 304.

      Former Subsec. (3):

      Cited. 179 C. 349. Cited. 193 C. 304.

      Former Subsec. (4):

      Cited. 193 C. 304.

      Former Subsec. (5):

      Cited. 179 C. 349.