70A-3-415 - Obligation of indorser. - Utah Statutes

70A-3-415. Obligation of indorser.
(1) Subject to Subsections (2), (3), and (4) and to Subsection 70A-3-419(4), if aninstrument is dishonored, an indorser is obliged to pay the amount due on the instrumentaccording to the terms of the instrument at the time it was indorsed, or if the indorser indorsed anincomplete instrument, according to its terms when completed, to the extent stated in Sections70A-3-115 and 70A-3-407. The obligation of the indorser is owed to a person entitled to enforcethe instrument or to a subsequent indorser who paid the instrument under this section.
(2) If an indorsement states that it is made "without recourse" or otherwise disclaimsliability of the indorser, the indorser is not liable under Subsection (1) to pay the instrument.
(3) If notice of dishonor of an instrument is required by Section 70A-3-503 and notice ofdishonor complying with that section is not given to an indorser, the liability of the indorserunder Subsection (1) is discharged.
(4) If a draft is accepted by a bank after an indorsement is made, the liability of theindorser under Subsection (1) is discharged.
(5) If an indorser of a check is liable under Subsection (1) and the check is not presentedfor payment, or given to a depositary bank for collection, within 30 days after the day theindorsement was made, the liability of the indorser under Subsection (1) is discharged.

Amended by Chapter 13, 1998 General Session