§ 25-3-415. Obligation of indorser. - North Carolina Statutes

§25‑3‑415.  Obligation of indorser.

(a)        Subject tosubsections (b), (c), (d), and (e) of this section and to G.S. 25‑3‑419(d),if an instrument is dishonored, an indorser is obliged to pay the amount due onthe instrument (i) according to the terms of the instrument at the time it wasindorsed, or (ii) if the indorser indorsed an incomplete instrument, accordingto its terms when completed, to the extent stated in G.S. 25‑3‑115and G.S. 25‑3‑407. The obligation of the indorser is owed to aperson entitled to enforce the instrument or to a subsequent indorser who paidthe instrument under this section.

(b)        If an indorsementstates that it is made "without recourse" or otherwise disclaimsliability of the indorser, the indorser is not liable under subsection (a) ofthis section to pay the instrument.

(c)        If notice ofdishonor of an instrument is required by G.S. 25‑3‑503 and noticeof dishonor complying with that section is not given to an indorser, theliability of the indorser under subsection (a) of this section is discharged.

(d)        If a draft isaccepted by a bank after an indorsement is made, the liability of the indorserunder subsection (a) of this section is discharged.

(e)        If an indorser of acheck is liable under subsection (a) of this section and the check is notpresented for payment, or given to a depositary bank for collection, within 30days after the day the indorsement was made, the liability of the indorserunder subsection (a) of this section is discharged. (1899, c. 733, ss. 7, 28, 29,38, 44, 64, 66 to 68, 70, 89, 118, 129, 143, 144, 150 to 153, 158, 186; Rev.,ss. 2157, 2176, 2177, 2187, 2193, 2213, 2215 to 2217, 2219, 2239, 2268, 2279,2293, 2294, 2300 to 2303, 2308, 2336; C.S., ss. 2988, 3008, 3009, 3019, 3125,3045, 3047 to 3049, 3051, 3071, 3100, 3111, 3125, 3126, 3132 to 3135, 3140,3168; 1965, c. 700, s. 1; 1967, c. 562, s. 1; 1995, c. 232, s. 1.)