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Can you summarize IACO 554.3415?
UNIFORM COMMERCIAL CODE > Obligation of endorser.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, outlines the obligation of an endorser in the case of a dishonored instrument. According to the document, an endorser is obliged to pay the amount due on the instrument as per its terms at the time of endorsement. This obligation is owed to a person entitled to enforce the instrument or a subsequent endorser who paid the instrument. However, if an endorsement states that it is made ‘without recourse’ or disclaims liability, the endorser is not liable to pay the instrument. Additionally, if notice of dishonor is not given to an endorser or if a draft is accepted by a bank after endorsement, the liability of the endorser is discharged. Furthermore, if an endorser of a check is liable but the check is not presented for payment within thirty days, the liability of the endorser is discharged. The document does not mention specific penalties for non-compliance or violation.
Whom does it apply to?
Endorsers of dishonored instruments
What does it govern?
Obligation of endorser
What are exemptions?
Endorsers who have stated that their endorsement is made 'without recourse' or otherwise disclaimed liability
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Iowa