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Can you summarize MNST 336.3-415?
UNIFORM COMMERCIAL CODE > OBLIGATION OF ENDORSER.
Short Summary
This legal provision, under the Minnesota Statutes, governs the obligation of an endorser in the context of dishonored instruments. According to this provision, if an instrument is dishonored, an endorser is obliged to pay the amount due on the instrument. The endorser’s obligation is determined based on the terms of the instrument at the time of endorsement or, if the instrument was incomplete at the time of endorsement, based on its completed terms. The endorser’s obligation is owed to the 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 required but not given to an endorser, or if a draft is accepted by a bank after endorsement, the endorser’s liability is discharged. Furthermore, if an endorser of a check is liable but the check is not presented for payment or given to a depositary bank within 30 days of endorsement, the endorser’s liability is discharged.
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
Minnesota