California Commercial Code

§ 3414

COM § 3414 Effective Jan 1, 1993Div. 3 · Ch. 4

Statute text

(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 pay the draft (1) 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, or (2) if the drawer signed an incomplete instrument, according to its terms when completed, to the extent stated in Sections 3115 and 3407. The obligation is owed to a person entitled to enforce the draft or to an indorser who paid the draft under Section 3415.

(c)If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained.

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Legislative history

Repealed and added by Stats. 1992, Ch. 914, Sec. 6. Effective January 1, 1993.