DIVISION 3. NEGOTIABLE INSTRUMENTS [3101. - 3605.]
Division 3 repealed and added by Stats. 1992, Ch. 914, Sec. 6.
§§ 3101–3605 · 68 sections
CHAPTER 1. General Provisions and Definitions §§ 3101–3119 · 19 sections
- § 3101 This division may be cited as Uniform Commercial Code—Negotiable Instruments.
- § 3102 (a) This division applies to negotiable instruments. It does not apply to money, to payment orders governed by Division 11 (commencing with Section 11101), or…
- § 3103 (a) In this division: (1) “Acceptor” means a drawee who has accepted a draft. (2) “Drawee” means a person ordered in a draft to make payment. (3) “Drawer”…
- § 3104 (a) Except as provided in subdivisions (c) and (d), “negotiable instrument” means an unconditional promise or order to pay a fixed amount of money, with or…
- § 3105 (a) “Issue” means: (1) the first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for the purpose of giving rights on the…
- § 3106 (a) Except as provided in this section, for the purposes of subdivision (a) of Section 3104, a promise or order is unconditional unless it states (1) an…
- § 3107 Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in an equivalent…
- § 3108 (a) A promise or order is “payable on demand” if it (1) states that it is payable on demand or at sight, or otherwise indicates that it is payable at the will…
- § 3109 (a) A promise or order is payable to bearer if it is any of the following: (1) States that it is payable to bearer or to the order of bearer or otherwise…
- § 3110 (a) The person to whom an instrument is initially payable is determined by the intent of the person, whether or not authorized, signing as, or in the name or…
- § 3111 Except as otherwise provided for items in Division 4 (commencing with Section 4101), an instrument is payable at the place of payment stated in the instrument.…
- § 3112 (a) Unless otherwise provided in the instrument, (1) an instrument is not payable with interest, and (2) interest on an interest-bearing instrument is payable…
- § 3113 (a) An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable at a fixed period after date.…
- § 3114 If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over…
- § 3115 (a) ‛Incomplete instrument‛ means a signed writing, whether or not issued by the signer, the contents of which show at the time of signing that it is…
- § 3116 (a) Except as otherwise provided in the instrument, two or more persons who have the same liability on an instrument as makers, drawers, acceptors, indorsers…
- § 3117 Subject to applicable law regarding exclusion of proof of contemporaneous or previous agreements, the obligation of a party to an instrument to pay the…
- § 3118 (a) Except as provided in subdivision (e), an action to enforce the obligation of a party to pay a note payable at a definite time shall be commenced within…
- § 3119 In an action for breach of an obligation for which a third person is answerable over pursuant to this division or Division 4 (commencing with Section 4101),…
CHAPTER 2. Negotiation, Transfer, and Indorsement §§ 3201–3207 · 7 sections
- § 3201 (a) “Negotiation” means a transfer of possession, whether voluntary or involuntary, of an instrument by a person other than the issuer to a person who thereby…
- § 3202 (a) Negotiation is effective even if obtained (1) from an infant, a corporation exceeding its powers, or a person without capacity, (2) by fraud, duress, or…
- § 3203 (a) An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to…
- § 3204 (a) “Indorsement” means a signature, other than that of a signer as maker, drawer, or acceptor, that alone or accompanied by other words is made on an…
- § 3205 (a) If an indorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the indorsement identifies a…
- § 3206 (a) An indorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective to…
- § 3207 Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise. A former holder who reacquires the instrument may…
CHAPTER 3. Enforcement of Instruments §§ 3301–3312 · 12 sections
- § 3301 “Person entitled to enforce” an instrument means (a) the holder of the instrument, (b) a nonholder in possession of the instrument who has the rights of a…
- § 3302 (a) Subject to subdivision (c) and subdivision (d) of Section 3106, “holder in due course” means the holder of an instrument if both of the following apply:…
- § 3303 (a) An instrument is issued or transferred for value if any of the following apply: (1) The instrument is issued or transferred for a promise of performance,…
- § 3304 (a) An instrument payable on demand becomes overdue at the earliest of the following times: (1) On the day after the day demand for payment is duly made. (2)…
- § 3305 (a) Except as stated in subdivision (b), the right to enforce the obligation of a party to pay an instrument is subject to all of the following: (1) A defense…
- § 3306 A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a property or possessory right in the…
- § 3307 (a) In this section: (1) “Fiduciary” means an agent, trustee, partner, corporate officer or director, limited liability company manager, or other…
- § 3308 (a) In an action with respect to an instrument, the authenticity of, and authority to make, each signature on the instrument is admitted unless specifically…
- § 3309 (a) A person not in possession of an instrument is entitled to enforce the instrument if (1) the person was in possession of the instrument and entitled to…
- § 3310 (a) Unless otherwise agreed, if a certified check, cashier’s check, or teller’s check is taken for an obligation, the obligation is discharged to the same…
- § 3311 (a) If a person against whom a claim is asserted proves that (1) that person in good faith tendered an instrument to the claimant as full satisfaction of the…
- § 3312 (a) In this section: (1) “Check” means a cashier’s check, teller’s check, or certified check. (2) “Claimant” means a person who claims the right to receive the…
CHAPTER 4. Liability of Parties §§ 3401–3420 · 20 sections
- § 3401 A person is not liable on an instrument unless (a) the person signed the instrument, or (b) the person is represented by an agent or representative who signed…
- § 3402 (a) If a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person or the name of the…
- § 3403 (a) Unless otherwise provided in this division or Division 4 (commencing with Section 4101), an unauthorized signature is ineffective except as the signature…
- § 3404 (a) If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or to a person acting in…
- § 3405 (a) In this section: (1) “Employee” includes an independent contractor and employee of an independent contractor retained by the employer. (2) “Fraudulent…
- § 3406 (a) A person whose failure to exercise ordinary care contributes to an alteration of an instrument or to the making of a forged signature on an instrument is…
- § 3407 (a) “Alteration” means (1) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (2) an unauthorized…
- § 3408 A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable…
- § 3409 (a) “Acceptance” means the drawee’s signed agreement to pay a draft as presented. It shall be written on the draft and may consist of the drawee’s signature…
- § 3410 (a) If the terms of a drawee’s acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat the draft as…
- § 3411 (a) In this section, “obligated bank” means the acceptor of a certified check or the issuer of a cashier’s check or teller’s check bought from the issuer. (b)…
- § 3412 The issuer of a note or cashier’s check or other draft drawn on the drawer is obliged to pay the instrument (a) according to its terms at the time it was…
- § 3413 (a) The acceptor of a draft is obliged to pay the draft (1) according to its terms at the time it was accepted, even though the acceptance states that the…
- § 3414 (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…
- § 3415 (a) Subject to subdivisions (b), (c), and (d) and to subdivision (d) of Section 3419, if an instrument is dishonored, an indorser is obliged to pay the amount…
- § 3416 (a) A person who transfers an instrument for consideration warrants all of the following to the transferee and, if the transfer is by indorsement, to any…
- § 3417 (a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining payment or…
- § 3418 (a) Except as provided in subdivision (c), if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that (1) payment of…
- § 3419 (a) If an instrument is issued for value given for the benefit of a party to the instrument (“accommodated party”) and another party to the instrument…
- § 3420 (a) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than a…
CHAPTER 5. Dishonor §§ 3501–3505 · 5 sections
- § 3501 (a) “Presentment” means a demand made by or on behalf of a person entitled to enforce an instrument (1) to pay the instrument made to the drawee or a party…
- § 3502 (a) Dishonor of a note is governed by the following rules: (1) If the note is payable on demand, the note is dishonored if presentment is duly made to the…
- § 3503 (a) The obligation of an indorser stated in subdivision (a) of Section 3415 and the obligation of a drawer stated in subdivision (d) of Section 3414 may not be…
- § 3504 (a) Presentment for payment or acceptance of an instrument is excused if (1) the person entitled to present the instrument cannot with reasonable diligence…
- § 3505 (a) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated: (1) A document regular in form as…
CHAPTER 6. Discharge and Payment §§ 3601–3605 · 5 sections
- § 3601 (a) The obligation of a party to pay the instrument is discharged as stated in this division or by an act or agreement with the party which would discharge an…
- § 3602 (a) Subject to subdivision (b), an instrument is paid to the extent payment is made (1) by or on behalf of a party obliged to pay the instrument, and (2) to a…
- § 3603 (a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by…
- § 3604 (a) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument (1) by an…
- § 3605 (a) In this section, the term “indorser” includes a drawer having the obligation described in subdivision (d) of Section 3414. (b) Discharge, under Section…