2006 Minnesota Statutes

336.3-414 MS 1990 [Repealed, 1992 c 565 s 114]
336.3-414 OBLIGATION OF DRAWER.
(a) This section does not apply to cashier's checks or other drafts drawn on the drawer.
(b) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft (i) according
to its terms at the time it was issued or, if not issued, at the time it first came into possession
of a holder, or (ii) if the drawer signed an incomplete instrument, according to its terms when
completed, to the extent stated in sections 336.3-115 and 336.3-407. The obligation is owed to a
person entitled to enforce the draft or to an endorser who paid the draft under section 336.3-415.
(c) If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom
acceptance was obtained.
(d) If a draft is accepted and the acceptor is not a bank, the obligation of the drawer to pay
the draft if the draft is dishonored by the acceptor is the same as the obligation of an endorser
under section 336.3-415(a) and (c).
(e) If a draft states that it is drawn "without recourse" or otherwise disclaims liability of
the drawer to pay the draft, the drawer is not liable under subsection (b) to pay the draft if the
draft is not a check. A disclaimer of the liability stated in subsection (b) is not effective if the
draft is a check.
(f) If (i) a check is not presented for payment or given to a depositary bank for collection
within 30 days after its date, (ii) the drawee suspends payments after expiration of the 30-day
period without paying the check, and (iii) because of the suspension of payments, the drawer is
deprived of funds maintained with the drawee to cover payment of the check, the drawer to the
extent deprived of funds may discharge its obligation to pay the check by assigning to the person
entitled to enforce the check the rights of the drawer against the drawee with respect to the funds.
History: 1992 c 565 s 54