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Can you summarize NHRS 382-A:3-414?
UNIFORM COMMERCIAL CODE > Obligation of Drawer.
Short Summary
This section of the New Hampshire Revised Statutes, specifically the Uniform Commercial Code, governs the obligation of the drawer. It applies to drawers of drafts, except for cashier’s checks or other drafts drawn on the drawer. If an unaccepted draft is dishonored, the drawer is obliged to pay the draft according to its terms at the time it was issued or when it first came into possession of a holder. If the drawer signed an incomplete instrument, the obligation is based on its terms when completed. The obligation is owed to a person entitled to enforce the draft or to an indorser who paid the draft. If a draft is accepted by a bank, the drawer is discharged from the obligation. However, if the acceptor is not a bank, the drawer’s obligation to pay the dishonored draft is the same as that of an indorser. If a draft states that it is drawn ‘without recourse’ or disclaims liability of the drawer, the drawer is not liable to pay the draft unless it is a check. Additionally, if a check is not presented for payment within 30 days and the drawee suspends payments, the drawer may discharge its obligation by assigning its rights against the drawee to the person entitled to enforce the check.
Whom does it apply to?
Drawers of drafts
What does it govern?
Obligation of the drawer
What are exemptions?
This section does not apply to cashier's checks or other drafts drawn on the drawer.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
New Hampshire