673.4151 Obligation of indorser.—
(1) Subject to subsections (2), (3), and (4) and to s. 673.4191(4), if an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument:
(a) According to the terms of the instrument at the time it was indorsed; or
(b) If the indorser indorsed an incomplete instrument, according to its terms when completed, to the extent stated in ss. 673.1151 and 673.4071.
The obligation of the indorser is owed to a person entitled to enforce the instrument or to a subsequent indorser who paid the instrument under this section.
(2) If an indorsement states that it is made “without recourse” or otherwise disclaims liability of the indorser, the indorser is not liable under subsection (1) to pay the instrument.
(3) If notice of dishonor of an instrument is required by s. 673.5031 and notice of dishonor complying with that section is not given to an indorser, the liability of the indorser under subsection (1) is discharged.
(4) If a draft is accepted by a bank after an indorsement is made, the liability of the indorser under subsection (1) is discharged.
(5) If an indorser of a check is liable under subsection (1) and the check is not presented for payment, or given to a depositary bank for collection, within 30 days after the day the indorsement was made, the liability of the indorser under subsection (1) is discharged.
History.—s. 2, ch. 92-82.
Section: Previous 673.4071 673.4081 673.4091 673.4101 673.4111 673.4121 673.4131 673.4141 673.4151 673.4161 673.4171 673.4181 673.4191 673.4201 NextLast modified: September 23, 2016