Ask Reggi Your Question Now
Can you summarize MNST 336.3-310?
UNIFORM COMMERCIAL CODE > EFFECT OF INSTRUMENT ON OBLIGATION FOR WHICH TAKEN.
Short Summary
This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, addresses 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 an equivalent amount of money was 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. Payment or certification of the instrument results in discharge of the obligation. If the instrument is dishonored and the obligee is the person entitled to enforce it, they may enforce either the instrument or the obligation. If the obligee is a person other than the obligee of the obligation, the obligee may not enforce the obligation to the extent it is suspended. If the obligee no longer has possession of the instrument due to loss, theft, or destruction, the obligation may only be enforced to the extent of the amount payable on the instrument. This document provides rules and guidelines for the effect of different instruments on obligations.
Whom does it apply to?
Persons who take certified checks, cashier's checks, teller's checks, notes, or uncertified checks for an obligation
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
Minnesota