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Can you summarize NVRS 104.3414?
Uniform Commercial CodeOriginal Articles > Obligation of drawer.
Short Summary
This section governs the obligation of the drawer in relation to drafts. 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, if not issued, at the time it first came into possession of a holder. If the drawer signed an incomplete instrument, the obligation is according to its terms when completed. The obligation is owed to a person entitled to enforce the draft or to an endorser who paid the draft. If a draft is accepted by a bank, the drawer is discharged. If a draft is accepted by a non-bank entity, the obligation of the drawer to pay the dishonored draft is the same as the obligation of an endorser. 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 if it is not a check. However, this disclaimer is not effective if the draft is a check. Additionally, if a check is not presented for payment within 30 days and the drawer is deprived of funds maintained with the drawee, the drawer may discharge their obligation by assigning their 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 drawer
What are exemptions?
This section does not apply to cashiers checks or other drafts drawn on the drawer.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
Nevada