Ask Reggi Your Question Now
Can you summarize IC 26-2-3?
COMMERCIAL TRANSACTIONS > Negotiable Instruments
Short Summary
The provided legal document content pertains to negotiable instruments. It states that all promissory notes, bills of exchange, bonds, or other instruments in writing, signed by any person who promises to pay money or acknowledges money to be due, or for the delivery of a specific article, or to convey property, or to perform any stipulation mentioned therein, shall be negotiable by endorsement. The assignee of any such instrument may recover against the person who made the same. The maker of the instrument can raise any defense or setoff they had before notice of assignment against the assignor or the original payee. An assignee who has used due diligence in the premises can take action against their immediate or any remote endorser, and in a suit against a remote endorser, they can raise any defense they might have had in a suit brought by their immediate assignee. The provisions of sections 3 and 4 of this chapter do not alter the law relative to bills of exchange as it existed on July 5, 1861. Notes payable to order or bearer in a bank in this state are negotiable as inland bills of exchange. Damages payable on protest for nonpayment or nonacceptance of a bill of exchange drawn or negotiated within this state vary depending on whether the bill is drawn upon a person within or outside the United States. Beyond such damages, no interest or charges accruing prior to protest shall be allowed, but interest from the date of the protest may be recovered. The rate of exchange shall not be taken into account for bills payable within the United States. No damages beyond the cost of protest shall be chargeable against the drawer or endorser if the same is paid upon notice of protest and demand of the principal sum. No holder of a bill of exchange shall recover damages if they have not given a valuable consideration for the same or for some interest therein. If a bill drawn or negotiated in this state is payable at any place outside the state but means for its discharge within the state are provided, no damages or charges for protest shall be allowed. The provisions of this chapter relating to damages on bills of exchange do not apply to promissory notes discounted by a bank and protested for nonpayment. Upon any instrument of writing containing a promise to pay money without relief from valuation laws, judgment shall be rendered and execution had accordingly. These documents apply to any person who promises to pay money, acknowledges money to be due, or performs any stipulation mentioned in the instrument. No specific exemptions or penalties are mentioned in these documents.
Whom does it apply to?
Any person who promises to pay money, acknowledges money to be due, or performs any stipulation mentioned in the instrument
What does it govern?
Negotiable instruments
What are exemptions?
The provisions of sections 3 and 4 of this chapter shall not alter the law relative to bills of exchange as it exists on July 5, 1861. The provisions of this chapter relating to damages on bills of exchange shall not apply to promissory notes discounted by a bank, and protested for nonpayment.
What are the Penalties?
No penalties are mentioned in these documents.
Jurisdiction
Indiana