California Commercial Code CHAPTER 4 - Liability of Parties

• Section 3401.
  (a) A person is not liable on an instrument unless (1) the person signed the instrument, or (2) the person is represented by an agent or...
• Section 3402.
  (a) If a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person or the...
• Section 3403.
  (a) Unless otherwise provided in this division or Division 4 (commencing with Section 4101), an unauthorized signature is ineffective except as the signature of the unauthorized...
• Section 3404.
  (a) If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or to...
• Section 3405.
  (a) In this section:(1) “Employee” includes an independent contractor and employee of an independent contractor retained by the employer.(2) “Fraudulent indorsement” means (A) in the case of an...
• Section 3406.
  (a) A person whose failure to exercise ordinary care contributes to an alteration of an instrument or to the making of a forged signature on an...
• Section 3407.
  (a) “Alteration” means (1) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (2) an unauthorized...
• Section 3408.
  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,...
• Section 3409.
  (a) “Acceptance” means the drawee’s signed agreement to pay a draft as presented. It shall be written on the draft and may consist of the drawee’s...
• Section 3410.
  (a) 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 the...
• Section 3411.
  (a) 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 the...
• Section 3412.
  The issuer of a note or cashier’s check or other draft drawn on the drawer is obliged to pay the instrument (a) according to its...
• Section 3413.
  (a) The acceptor of a draft is obliged to pay the draft (1) according to its terms at the time it was accepted, even though the...
• Section 3414.
  (a) This section does not apply to cashier’s checks or other drafts drawn on the drawer.(b) If an unaccepted draft is dishonored, the drawer is obliged to...
• Section 3415.
  (a) Subject to subdivisions (b), (c), and (d) and to subdivision (d) of Section 3419, if an instrument is dishonored, an indorser is obliged to pay...
• Section 3416.
  (a) A person who transfers an instrument for consideration warrants all of the following to the transferee and, if the transfer is by indorsement, to any...
• Section 3417.
  (a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining...
• Section 3418.
  (a) Except as provided in subdivision (c), if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief...
• Section 3419.
  (a) If an instrument is issued for value given for the benefit of a party to the instrument (“accommodated party”) and another party to the instrument...
• Section 3420.
  (a) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than a...

Last modified: October 22, 2018