8.3A-415 - A-415. Obligation of endorser. - Virginia Statutes

§ 8.3A-415. Obligation of endorser.

(a) Subject to subsections (b), (c), and (d) and to § 8.3A-419 (d), if aninstrument is dishonored, an endorser is obliged to pay the amount due on theinstrument (i) according to the terms of the instrument at the time it wasendorsed, or (ii) if the endorser endorsed an incomplete instrument,according to its terms when completed, to the extent stated in §§ 8.3A-115and 8.3A-407. The obligation of the endorser is owed to a person entitled toenforce the instrument or to a subsequent endorser who paid the instrumentunder this section.

(b) If an endorsement states that it is made "without recourse" orotherwise disclaims liability of the endorser, the endorser is not liableunder subsection (a) to pay the instrument.

(c) If notice of dishonor of an instrument is required by § 8.3A-503 andnotice of dishonor complying with that section is not given to an endorser,the liability of the endorser under subsection (a) is discharged.

(d) If a draft is accepted by a bank after an endorsement is made, theliability of the endorser under subsection (a) is discharged.

(e) If an endorser of a check is liable under subsection (a) and the check isnot presented for payment, or given to a depositary bank for collection,within thirty days after the day the endorsement was made, the liability ofthe endorser under subsection (a) is discharged.

(Code 1950, §§ 6-390, 6-418 through 6-420, 6-471, 6-496, 6-497, 6-503, 6-505,6-539, 6-541 through 6-543; 1964, c. 219, §§ 8.3-411, 8.3-414, 8.3-501,8.3-502; 1992, c. 693.)