§ 6A-3-415 - Obligation of indorser. - Rhode Island Statutes

SECTION 6A-3-415

   § 6A-3-415  Obligation of indorser. –(a) Subject to subsections (b), (c), (d), (e) and to § 6A-3-419(d), if aninstrument is dishonored, an indorser is obliged to pay the amount due on theinstrument (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 §§ 6A-3-115 and6A-3-407. The obligation of the indorser is owed to a person entitled toenforce the instrument or to a subsequent indorser who paid the instrumentunder this section.

   (b) If an indorsement states that it is made "withoutrecourse" or otherwise disclaims liability of the indorser, the indorser is notliable under subsection (a) to pay the instrument.

   (c) If notice of dishonor of an instrument is required by§ 6A-3-503 and notice of dishonor complying with that section is not givento an indorser, the liability of the indorser under subsection (a) isdischarged.

   (d) If a draft is accepted by a bank after an indorsement ismade, the liability of the indorser under subsection (a) is discharged.

   (e) If an indorser of a check is liable under subsection (a)and the check is not presented for payment, or given to a depositary bank forcollection, within 30 days after the day the indorsement was made, theliability of the indorser under subsection (a) is discharged.