400.3-414. Obligation of drawer. - Missouri Statutes

Obligation of drawer.

400.3-414. (a) This section does not apply to cashier'schecks or other drafts drawn on the drawer.

(b) If an unaccepted draft is dishonored, the drawer isobliged to pay the draft (i) according to its terms at the timeit was issued or, if not issued, at the time it first came intopossession of a holder, or (ii) if the drawer signed anincomplete instrument, according to its terms when completed, tothe extent stated in Sections 400.3-115 and 400.3-407. Theobligation is owed to a person entitled to enforce the draft orto an endorser who paid the draft under Section 400.3-415.

(c) If a draft is accepted by a bank, the drawer isdischarged, regardless of when or by whom acceptance wasobtained.

(d) If a draft is accepted and the acceptor is not a bank,the obligation of the drawer to pay the draft if the draft isdishonored by the acceptor is the same as the obligation of anendorser under Section 400.3-415(a) and (c).

(e) If a draft states that it is drawn "without recourse"or otherwise disclaims liability of the drawer to pay the draft,the drawer is not liable under subsection (b) to pay the draft ifthe draft is not a check. A disclaimer of the liability statedin subsection (b) is not effective if the draft is a check.

(f) If (i) a check is not presented for payment or given toa depositary bank for collection within 30 days after its date,(ii) the drawee suspends payments after expiration of the 30-dayperiod without paying the check, and (iii) because of thesuspension of payments, the drawer is deprived of fundsmaintained with the drawee to cover payment of the check, thedrawer to the extent deprived of funds may discharge itsobligation to pay the check by assigning to the person entitledto enforce the check the rights of the drawer against the draweewith respect to the funds.

(L. 1992 S.B. 448)

*No continuity with § 400.3-414 as repealed by L. 1992 S.B. 448.