70A-3-414 - Obligation of drawer. - Utah Statutes

70A-3-414. Obligation of drawer.
(1) This section does not apply to cashier's checks or other drafts drawn on the drawer.
(2) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft accordingto its terms at the time it was issued or, if not issued, at the time it first came into possession of aholder, or if the drawer signed an incomplete instrument, according to its terms when completed,to the extent stated in Sections 70A-3-115 and 70A-3-407. The obligation is owed to a personentitled to enforce the draft or to an indorser who paid the draft under Section 70A-3-415.
(3) If a draft is accepted by a bank, the drawer is discharged, regardless of when or bywhom acceptance was obtained.
(4) If a draft is accepted and the acceptor is not a bank, the obligation of the drawer topay the draft if the draft is dishonored by the acceptor is the same as the obligation of an indorserunder Subsections 70A-3-415(1) and (3).
(5) If a draft states that it is drawn "without recourse" or otherwise disclaims liability ofthe drawer to pay the draft, the drawer is not liable under Subsection (2) to pay the draft if thedraft is not a check. A disclaimer of the liability stated in Subsection (2) is not effective if thedraft is a check.
(6) If a check is not presented for payment or given to a depositary bank for collectionwithin 30 days after its date, the drawee suspends payments after expiration of the 30-day periodwithout paying the check, and because of the suspension of payments, the drawer is deprived offunds maintained with the drawee to cover payment of the check, the drawer to the extentdeprived of funds 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 with respect to the funds.

Repealed and Re-enacted by Chapter 237, 1993 General Session