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Can you summarize IACO 554.3413?
UNIFORM COMMERCIAL CODE > Obligation of acceptor.
Short Summary
This legal document, found in the Iowa Code under the Uniform Commercial Code, governs the obligation of the acceptor of a draft. The acceptor is obliged to pay the draft according to its terms at the time it was accepted. This obligation applies even if the acceptance states that the draft is payable ‘as originally drawn’ or equivalent terms, as long as the acceptance varies the terms of the draft according to the terms of the draft as varied. If the acceptance is of an incomplete instrument, the acceptor is obliged to pay according to its terms when completed, to the extent stated in sections 554.3115 and 554.3407. The obligation is owed to a person entitled to enforce the draft or to the drawer or an endorser who paid the draft under section 554.3414 or 554.3415. The document also specifies that if the certification of a check or other acceptance of a draft states the amount certified or accepted, the obligation of the acceptor is that amount. If the certification or acceptance does not state an amount, the amount of the instrument is subsequently raised, and the instrument is then negotiated to a holder in due course, the obligation of the acceptor is the amount of the instrument at the time it was taken by the holder in due course.
Whom does it apply to?
Acceptors of drafts
What does it govern?
Obligation of acceptor
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Iowa