§ 25-3-414. Obligation of drawer. - North Carolina Statutes

§25‑3‑414.  Obligation of drawer.

(a)        This section doesnot apply to cashier's checks or other drafts drawn on the drawer.

(b)        If an unaccepteddraft is dishonored, the drawer is obliged to pay the draft (i) according toits terms at the time it was issued or, if not issued, at the time it firstcame into possession of a holder, or (ii) if the drawer signed an incompleteinstrument, according to its terms when completed, to the extent stated in G.S.25‑3‑115 and G.S. 25‑3‑407. The obligation is owed to aperson entitled to enforce the draft or to an indorser who paid the draft underG.S. 25‑3‑415.

(c)        If a draft isaccepted by a bank, the drawer is discharged, regardless of when or by whomacceptance was obtained.

(d)        If a draft isaccepted and the acceptor is not a bank, the obligation of the drawer to paythe draft if the draft is dishonored by the acceptor is the same as theobligation of an indorser under G.S. 25‑3‑415(a) and (c).

(e)        If a draft statesthat it is drawn "without recourse" or otherwise disclaims liabilityof the drawer to pay the draft, the drawer is not liable under subsection (b)of this section to pay the draft if the draft is not a check. A disclaimer ofthe liability stated in subsection (b) of this section is not effective if thedraft is a check.

(f)         If (i) a check isnot presented for payment or given to a depositary bank for collection within30 days after its date, (ii) the drawee suspends payments after expiration ofthe 30‑day period without paying the check, and (iii) because of thesuspension of payments, the drawer is deprived of funds maintained with thedrawee to cover payment of the check, the drawer to the extent deprived offunds may discharge its obligation to pay the check by assigning to the personentitled to enforce the check the rights of the drawer against the drawee withrespect to the funds. (1899, c. 733, ss. 7, 60 to 62, 70, 89, 118, 129, 143,144, 150 to 153, 158, 186, 187, 188; Rev., ss. 2157, 2209 to 2211, 2219, 2239,2268, 2279, 2293, 2294, 2300 to 2303, 2308, 2336, 2337, 2338; C.S., ss.  2988,3041 to 3043, 3051, 3071, 3100, 3111, 3125, 3126, 3132 to 3135, 3140, 3168,3169, 3170; 1965, c. 700, s. 1; 1967, c. 562, s. 1; 1995, c. 232, s. 1.)