Oregon Statutes - Chapter 73 - Negotiable Instruments

• 73.0101   Short title.
  This chapter may be cited as Uniform Commercial Code–Negotiable Instruments. [1993 c.545 §4]
• 73.0102   Application of chapter.
  (1) This chapter applies to negotiable instruments. This chapter does not apply to money, to payment orders governed by ORS chapter 74, or to securities...
• 73.0103   Definitions.
  (1) As used in this chapter: (a) “Acceptor” means a drawee who has accepted a draft. (b) “Drawee” means a person ordered in a draft...
• 73.0104   Negotiable instrument; other definitions.
  (1) Except as provided in subsections (3) and (4) of this section, “negotiable instrument” means an unconditional promise or order to pay a fixed amount...
• 73.0105   Issue of instrument.
  (1) “Issue” means the first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for the purpose of giving...
• 73.0106   Unconditional promise or order.
  (1) Except as provided in this section, for the purposes of ORS 73.0104 (1), a promise or order is unconditional unless it states an express...
• 73.0107   Instrument payable in foreign money.
  Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in an...
• 73.0108   Payable on demand or at definite time.
  (1) A promise or order is “payable on demand” if it: (a) States that it is payable on demand or at sight, or otherwise indicates...
• 73.0109   Payable to bearer or to order.
  (1) A promise or order is payable to bearer if it: (a) States that it is payable to bearer or to the order of bearer...
• 73.0110   Identification of person to whom instrument is payable.
  (1) The person to whom an instrument is initially payable is determined by the intent of the person, whether or not authorized, signing as, or...
• 73.0111   Place of payment.
  Except as otherwise provided for items in ORS chapter 74, an instrument is payable at the place of payment stated in the instrument. If no...
• 73.0112   Interest.
  (1) Unless otherwise provided in the instrument: (a) An instrument is not payable with interest; and (b) Interest on an interest-bearing instrument is payable from...
• 73.0113   Date of instrument.
  (1) An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable at a fixed period...
• 73.0114   Contradictory terms of instrument.
  If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers. [1993 c.545 §17]
• 73.0115   Incomplete instrument.
  (1) “Incomplete instrument” means a signed writing, whether or not issued by the signer, the contents of which show at the time of signing that...
• 73.0116   Joint and several liability; contribution.
  (1) Except as otherwise provided in the instrument, two or more persons who have the same liability on an instrument as makers, drawers, acceptors, indorsers...
• 73.0117   Other agreements affecting instrument.
  Subject to applicable law regarding exclusion of proof of contemporaneous or previous agreements, the obligation of a party to an instrument to pay the instrument...
• 73.0118   Statute of limitations.
  (1) Except as provided in subsection (5) of this section, an action to enforce the obligation of a party to pay a note payable at...
• 73.0119   Notice of right to defend action.
  In an action for breach of an obligation over which a third person is answerable pursuant to this chapter or ORS chapter 74, the defendant...
• 73.0201   Negotiation.
  (1) “Negotiation” means a transfer of possession, whether voluntary or involuntary, of an instrument by a person other than the issuer to a person who...
• 73.0202   Negotiation subject to rescission.
  (1) Negotiation is effective even if obtained: (a) From an infant, a corporation exceeding its powers or a person without capacity; (b) By fraud, duress...
• 73.0203   Transfer of instrument; rights acquired by transfer.
  (1) An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving...
• 73.0204   Indorsement.
  (1) “Indorsement” means a signature, other than that of a signer as maker, drawer or acceptor, that alone or accompanied by other words is made...
• 73.0205   Special indorsement; blank indorsement; anomalous indorsement.
  (1) If an indorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the indorsement...
• 73.0206   Restrictive indorsement.
  (1) An indorsement limiting payment to a particular person or otherwise prohibiting further transfer or negotiation of the instrument is not effective to prevent further...
• 73.0207   Reacquisition.
  Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise. A former holder who reacquires the instrument may...
• 73.0301   Person entitled to enforce instrument.
  “Person entitled to enforce” an instrument means the holder of the instrument, a nonholder in possession of the instrument who has the rights of a...
• 73.0302   Holder in due course.
  (1) Subject to ORS 73.0106 (3) and (4), “holder in due course” means the holder of an instrument if: (a) The instrument when issued or...
• 73.0303   Value and consideration.
  (1) An instrument is issued or transferred for value if: (a) The instrument is issued or transferred for a promise of performance, to the extent...
• 73.0304   Overdue instrument.
  (1) An instrument payable on demand becomes overdue at the earliest of the following times: (a) On the day after the day demand for payment...
• 73.0305   Defenses and claims in recoupment.
  (1) Except as stated in subsection (2) of this section, the right to enforce the obligation of a party to pay an instrument is subject...
• 73.0306   Claims to an instrument.
  A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a property...
• 73.0307   Notice of breach of fiduciary duty.
  (1) In this section: (a) “Fiduciary” means an agent, trustee, partner, corporate officer, director or other representative owing a fiduciary duty with respect to an...
• 73.0308   Proof of signatures and status as holder in due course.
  (1) In an action with respect to an instrument, the authenticity of, and authority to make, each signature on the instrument is admitted unless specifically...
• 73.0309   Enforcement of lost, destroyed or stolen instrument.
  (1) A person not in possession of an instrument is entitled to enforce the instrument if: (a) The person was in possession of the instrument...
• 73.0310   Effect of instrument on obligation for which taken.
  (1) Unless otherwise agreed, if a certified check, cashier’s check or teller’s check is taken for an obligation, the obligation is discharged to the same...
• 73.0311   Accord and satisfaction.
  The negotiation of an instrument marked “paid in full,” “payment in full,” “full payment of a claim” or words of similar meaning, or the negotiation...
• 73.0312   Lost, destroyed or stolen cashier’s check, teller’s check or certified check.
  (1) In this section: (a) “Check” means a cashier’s check, teller’s check or certified check. (b) “Claimant” means a person who claims the right to...
• 73.0401   Signature.
  (1) A person is not liable on an instrument unless: (a) The person signed the instrument; or (b) The person is represented by an agent...
• 73.0402   Signature by representative.
  (1) If a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person or...
• 73.0403   Unauthorized signature.
  (1) Unless otherwise provided in this chapter or ORS chapter 74, an unauthorized signature is ineffective except as the signature of the unauthorized signer in...
• 73.0404   Impostors; fictitious payees.
  (1) If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or...
• 73.0405   Employer’s responsibility for fraudulent indorsement by employee.
  (1) In this section: (a) “Employee” includes an independent contractor and employee of an independent contractor retained by the employer. (b) “Fraudulent indorsement” means: (A)...
• 73.0406   Negligence contributing to forged signature or alteration of instrument.
  (1) A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged signature...
• 73.0407   Alteration.
  (1) “Alteration” means: (a) An unauthorized change in an instrument that purports to modify in any respect the obligation of a party; or (b) An...
• 73.0408   Drawee not liable on unaccepted draft.
  A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment,...
• 73.0409   Acceptance of draft; certified check.
  (1) “Acceptance” means the drawee’s signed agreement to pay a draft as presented. It must be written on the draft and may consist of the...
• 73.0410   Acceptance varying draft.
  (1) If the terms of a drawee’s acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat...
• 73.0411   Refusal to pay cashier’s checks, teller’s checks and certified checks.
  (1) In this section, “obligated bank” means the acceptor of a certified check or the issuer of a cashier’s check or teller’s check bought from...
• 73.0412   Obligation of issuer of note or cashier’s check.
  The issuer of a note or cashier’s check or other draft drawn on the drawer is obliged to pay the instrument according to its terms...
• 73.0413   Obligation of acceptor.
  (1) The acceptor of a draft is obligated to pay the draft: (a) According to its terms at the time it was accepted, even though...
• 73.0414   Obligation of drawer.
  (1) This section does not apply to cashier’s checks or other drafts drawn on the drawer. (2) If an unaccepted draft is dishonored, the drawer...
• 73.0415   Obligation of indorser.
  (1) Subject to subsections (2), (3) and (4) of this section and to ORS 73.0419 (4), if an instrument is dishonored, an indorser is obliged...
• 73.0416   Transfer warranties.
  (1) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee that:...
• 73.0417   Presentment warranties.
  (1) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, the person obtaining...
• 73.0418   Payment or acceptance by mistake.
  (1) Except as provided in subsection (3) of this section, if the drawee of a draft pays or accepts the draft and the drawee acted...
• 73.0419   Instruments signed for accommodation.
  (1) If an instrument is issued for value given for the benefit of a party to the instrument (“accommodated party”) and another party to the...
• 73.0420   Conversion of instrument.
  (1) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than...
• 73.0501   Presentment.
  (1) “Presentment” means a demand made by or on behalf of a person entitled to enforce an instrument to pay the instrument made to the...
• 73.0502   Dishonor.
  (1) Dishonor of a note is governed by the following rules: (a) If the note is payable on demand, the note is dishonored if presentment...
• 73.0503   Notice of dishonor.
  (1) The obligation of an indorser stated in ORS 73.0415 (1) and the obligation of a drawer stated in ORS 73.0414 (4) may not be...
• 73.0504   Excused presentment and notice of dishonor.
  (1) Presentment for payment or acceptance of an instrument is excused if: (a) The person entitled to present the instrument cannot with reasonable diligence make...
• 73.0505   Evidence of dishonor.
  (1) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated: (a) A document regular in...
• 73.0601   Discharge and effect of discharge.
  (1) The obligation of a party to pay the instrument is discharged as stated in this chapter or by an act or agreement with the...
• 73.0602   Payment.
  (1) Subject to subsection (2) of this section, an instrument is paid to the extent payment is made by or on behalf of a party...
• 73.0603   Tender of payment.
  (1) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of...
• 73.0604   Discharge by cancellation or renunciation.
  (1) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument: (a) By...
• 73.0605   Discharge of indorsers and accommodation parties.
  (1) In this section, the term “indorser” includes a drawer having the obligation described in ORS 73.0414. (2) Discharge, under ORS 73.0604, of the obligation...
• 73.1010   [1961 c.726 §73.1010; repealed by 1993 c.545 §126]
• 73.1020   [1961 c.726 §73.1020; repealed by 1993 c.545 §126]
• 73.1030   [1961 c.726 §73.1030; repealed by 1993 c.545 §126]
• 73.1040   [1961 c.726 §73.1040; 1983 c.37 §36a; repealed by 1993 c.545 §126]
• 73.1050   [1961 c.726 §73.1050; repealed by 1993 c.545 §126]
• 73.1060   [1961 c.726 §73.1060; 1989 c.246 §1; repealed by 1993 c.545 §126]
• 73.1070   [1961 c.726 §73.1070; 1991 c.202 §19; repealed by 1993 c.545 §126]
• 73.1080   [1961 c.726 §73.1080; repealed by 1993 c.545 §126]
• 73.1090   [1961 c.726 §73.1090; repealed by 1993 c.545 §126]
• 73.1100   [1961 c.726 §73.1100; repealed by 1993 c.545 §126]
• 73.1110   [1961 c.726 §73.1110; repealed by 1993 c.545 §126]
• 73.1120   [1961 c.726 §73.1120; repealed by 1993 c.545 §126]
• 73.1130   [1961 c.726 §73.1130; repealed by 1993 c.545 §126]
• 73.1140   [1961 c.726 §73.1140; repealed by 1993 c.545 §126]
• 73.1150   [1961 c.726 §73.1150; repealed by 1993 c.545 §126]
• 73.1160   [1961 c.726 §73.1160; repealed by 1993 c.545 §126]
• 73.1170   [1961 c.726 §73.1170; repealed by 1993 c.545 §126]
• 73.1180   [1961 c.726 §73.1180; repealed by 1993 c.545 §126]
• 73.1190   [1961 c.726 §73.1190; repealed by 1993 c.545 §126]
• 73.1200   [1961 c.726 §73.1200; repealed by 1993 c.545 §126]
• 73.1210   [1961 c.726 §73.1210; repealed by 1993 c.545 §126]
• 73.1220   [1961 c.726 §73.1220; repealed by 1993 c.545 §126]
• 73.1230   [1989 c.1060 §2; repealed by 1993 c.545 §126]
• 73.2010   [1961 c.726 §73.2010; repealed by 1993 c.545 §126]
• 73.2020   [1961 c.726 §73.2020; repealed by 1993 c.545 §126]
• 73.2030   [1961 c.726 §73.2030; repealed by 1993 c.545 §126]
• 73.2040   [1961 c.726 §73.2040; repealed by 1993 c.545 §126]
• 73.2050   [1961 c.726 §73.2050; repealed by 1993 c.545 §126]
• 73.2060   [1961 c.726 §73.2060; repealed by 1993 c.545 §126]
• 73.2070   [1961 c.726 §73.2070; repealed by 1993 c.545 §126]
• 73.2080   [1961 c.726 §73.2080; repealed by 1993 c.545 §126]
• 73.3010   [1961 c.726 §73.3010; repealed by 1993 c.545 §126]
• 73.3020   [1961 c.726 §73.3020; repealed by 1993 c.545 §126]
• 73.3030   [1961 c.726 §73.3030; repealed by 1993 c.545 §126]
• 73.3040   [1961 c.726 §73.3040; repealed by 1993 c.545 §126]
• 73.3050   [1961 c.726 §73.3050; repealed by 1993 c.545 §126]
• 73.3060   [1961 c.726 §73.3060; repealed by 1993 c.545 §126]
• 73.3070   [1961 c.726 §73.3070; repealed by 1993 c.545 §126]
• 73.4010   [1961 c.726 §73.4010; repealed by 1993 c.545 §126]
• 73.4020   [1961 c.726 §73.4020; repealed by 1993 c.545 §126]
• 73.4030   [1961 c.726 §73.4030; repealed by 1993 c.545 §126]
• 73.4040   [1961 c.726 §73.4040; repealed by 1993 c.545 §126]
• 73.4050   [1961 c.726 §73.4050; repealed by 1993 c.545 §126]
• 73.4060   [1961 c.726 §73.4060; repealed by 1993 c.545 §126]
• 73.4070   [1961 c.726 §73.4070; repealed by 1993 c.545 §126]
• 73.4080   [1961 c.726 §73.4080; repealed by 1993 c.545 §126]
• 73.4090   [1961 c.726 §73.4090; repealed by 1993 c.545 §126]
• 73.4100   [1961 c.726 §73.4100; repealed by 1993 c.545 §126]
• 73.4110   [1961 c.726 §73.4110; repealed by 1993 c.545 §126]
• 73.4120   [1961 c.726 §73.4120; repealed by 1993 c.545 §126]
• 73.4130   [1961 c.726 §73.4130; repealed by 1993 c.545 §126]
• 73.4140   [1961 c.726 §73.4140; repealed by 1993 c.545 §126]
• 73.4150   [1961 c.726 §73.4150; repealed by 1993 c.545 §126]
• 73.4160   [1961 c.726 §73.4160; repealed by 1993 c.545 §126]
• 73.4170   [1961 c.726 §73.4170; repealed by 1993 c.545 §126]
• 73.4180   [1961 c.726 §73.4180; repealed by 1993 c.545 §126]
• 73.4190   [1961 c.726 §73.4190; repealed by 1993 c.545 §126]
• 73.5010   [1961 c.726 §73.5010; repealed by 1993 c.545 §126]
• 73.5020   [1961 c.726 §73.5020; repealed by 1993 c.545 §126]
• 73.5030   [1961 c.726 §73.5030; repealed by 1993 c.545 §126]
• 73.5040   [1961 c.726 §73.5040; 1963 c.402 §1; repealed by 1993 c.545 §126]
• 73.5050   [1961 c.726 §73.5050; repealed by 1993 c.545 §126]
• 73.5060   [1961 c.726 §73.5060; repealed by 1993 c.545 §126]
• 73.5070   [1961 c.726 §73.5070; repealed by 1993 c.545 §126]
• 73.5080   [1961 c.726 §73.5080; repealed by 1993 c.545 §126]
• 73.5090   [1961 c.726 §73.5090; repealed by 1993 c.545 §126]
• 73.5100   [1961 c.726 §73.5100; repealed by 1993 c.545 §126]
• 73.5110   [1961 c.726 §73.5110; repealed by 1993 c.545 §126]
• 73.6010   [1961 c.726 §73.6010; repealed by 1993 c.545 §126]
• 73.6020   [1961 c.726 §73.6020; repealed by 1993 c.545 §126]
• 73.6030   [1961 c.726 §73.6030; repealed by 1993 c.545 §126]
• 73.6040   [1961 c.726 §73.6040; repealed by 1993 c.545 §126]
• 73.6050   [1961 c.726 §73.6050; repealed by 1993 c.545 §126]
• 73.6060   [1961 c.726 §73.6060; repealed by 1993 c.545 §126]
• 73.7010   [1961 c.726 §73.7010; repealed by 1993 c.545 §126]
• 73.8010   [1961 c.726 §73.8010; repealed by 1993 c.545 §126]
• 73.8020   [1961 c.726 §73.8020; repealed by 1993 c.545 §126]
• 73.8030   [1961 c.726 §73.8030; repealed by 1993 c.545 §126]
• 73.8040   [1961 c.726 §73.8040; repealed by 1993 c.545 §126]
• 73.8050   [1961 c.726 §73.8050; repealed by 1993 c.545 §126]

Last modified: August 7, 2008