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Can you summarize IACO 554.3310?
UNIFORM COMMERCIAL CODE > Effect of instrument on obligation for which taken.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, governs the effect of different types of instruments on obligations. If a certified check, cashier’s check, or teller’s check is taken for an obligation, the obligation is discharged to the same extent as if the amount of the instrument were taken in payment. However, the obligor may still have liability as an endorser of the instrument. If a note or an uncertified check is taken, the obligation is suspended until the instrument is dishonored, paid, or certified. The obligee may enforce either the instrument or the obligation if the instrument is dishonored and the obligee is the person entitled to enforce it. If the person entitled to enforce the instrument is someone other than the obligee, the obligee may not enforce the obligation to the extent it is suspended. If an instrument other than those mentioned is taken, the effect depends on whether a bank is liable as maker or acceptor. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Persons involved in commercial transactions in Iowa
What does it govern?
Effect of instrument on obligation for which taken
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No penalties are mentioned
Jurisdiction
Iowa