Michigan Compiled Laws 174-1962-3-4 Part 4 Liability Of Parties (440.3401...440.3420)

• Section 440.3401 Liability; Signature.
  (1) A person is not liable on an instrument unless (i) the person signed the instrument, or (ii) the person is represented by an...
• Section 440.3402 Liability Of Parties; Signature By Authorized 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...
• Section 440.3403 Unauthorized Signature; Effect.
  (1) Unless otherwise provided in this article or article 4, an unauthorized signature is ineffective except as the signature of the unauthorized signer in...
• Section 440.3404 Imposter; Inducing Issuance Of Instrument; Endorsement In Name Of Payee; Failure To Exercise Ordinary Care.
  (1) If an imposter, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the imposter,...
• Section 440.3405 Definitions; Fraudulent Endorsement By Employee Or Person Acting In Concert With Employee.
  (1) As used in this section: (a) “Employee” includes an independent contractor and employee of an independent contractor retained by the employer. (b) “Fraudulent...
• Section 440.3406 Failure To Exercise Ordinary Care Contributing To Alteration Or Forged Instrument; Allocation Of Loss; Burden Of Proof.
  (1) A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged...
• Section 440.3407 Alteration; Definition; Discharge Of Party Affected; Enforcement Of Rights.
  (1) “Alteration” means (i) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (ii)...
• Section 440.3408 Check Or Draft; Operation As Assignment.
  A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its...
• Section 440.3409 Acceptance Of Draft; Definition; Operation; “certified Check” Defined; Refusal To Certify.
  (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...
• Section 440.3410 Acceptance Varying From Terms Of 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...
• Section 440.3411 Obligated Bank; Definition; Refusal To Pay Check; Expenses Or Damages Not Recoverable.
  (1) As used in this section, “obligated bank” means the acceptor of a certified check or the issuer of a cashier's check or teller's...
• Section 440.3412 Note, Cashier's Check, Or Other Draft; Obligation Of Issuer To Pay According To Terms.
  The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument (i) according to...
• Section 440.3413 Draft; Obligation To Pay According To Terms; Amount.
  (1) The acceptor of a draft is obliged to pay the draft (i) according to its terms at the time it was accepted, even...
• Section 440.3414 Applicability Of Section; Unaccepted Draft; Dishonor; Payment According To Terms; Acceptance By Bank; Discharge Of Drawer; Obligation Of Drawer If Acceptor Not Bank And Draft Dishonored; Disclaimer Of Liability; Suspension Of Payments After Expiration Of 30-day Period.
  (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...
• Section 440.3415 Dishonored Instrument; Obligation And Liability Of Endorser.
  (1) Subject to subsections (2), (3), (4), and (5) and to section 3419(4), if an instrument is dishonored, an endorser is obliged to pay...
• Section 440.3416 Transfer Of Instrument For Consideration; Endorsement; Warranties.
  (1) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by endorsement, to any subsequent transferee...
• Section 440.3417 Presentment Of Unaccepted Or Dishonored Draft; Rights Of Parties.
  (1) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the...
• Section 440.3418 Payment Or Acceptance By Mistake.
  (1) Except as provided in subsection (3), if the drawee of a draft pays or accepts the draft and the drawee acted on the...
• Section 440.3419 Accommodation Parties.
  (1) If an instrument is issued for value given for the benefit of a party to the instrument ("accommodated party") and another party to...
• Section 440.3420 Conversion.
  (1) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other...

Last modified: October 10, 2016