400.3-415. Obligation of endorser. - Missouri Statutes

Obligation of endorser.

400.3-415. (a) Subject to subsections (b), (c), and (d)and to Section 400.3-419(d), if an instrument is dishonored, anendorser is obliged to pay the amount due on the instrument (i)according to the terms of the instrument at the time it wasendorsed, or (ii) if the endorser endorsed an incompleteinstrument, according to its terms when completed, to the extentstated in Sections 400.3-115 and 400.3-407. The obligation ofthe endorser is owed to a person entitled to enforce theinstrument or to a subsequent endorser who paid the instrumentunder this section.

(b) If an endorsement states that it is made "withoutrecourse" or otherwise disclaims liability of the endorser, theendorser is not liable under subsection (a) to pay theinstrument.

(c) If notice of dishonor of an instrument is required bySection 400.3-503 and notice of dishonor complying with thatsection is not given to an endorser, the liability of theendorser under subsection (a) is discharged.

(d) If a draft is accepted by a bank after an endorsementis made, the liability of the endorser under subsection (a) isdischarged.

(e) If an endorser of a check is liable under subsection(a) and the check is not presented for payment, or given to adepositary bank for collection, within 30 days after the day theendorsement was made, the liability of the endorser undersubsection (a) is discharged.

(L. 1992 S.B. 448)

*No continuity with § 400.3-415 as repealed by L. 1992 S.B. 448.