2009 Iowa Code
Title 13 - Commerce
Subtitle 5 - Regulation of Commercial Enterprises
CHAPTER 554 - UNIFORM COMMERCIAL CODE
554.3414 - OBLIGATION OF DRAWER.

        554.3414  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 is obliged to
      pay the draft (i) 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 (ii) if the drawer signed an incomplete instrument,
      according to its terms when completed, to the extent stated in
      sections 554.3115 and 554.3407.  The obligation is owed to a person
      entitled to enforce the draft or to an endorser who paid the draft
      under section 554.3415.
         3.  If a draft is accepted by a bank, the drawer is discharged,
      regardless of when or by whom acceptance was obtained.
         4.  If a draft is accepted and the acceptor is not a bank, the
      obligation of the drawer to pay the draft if the draft is dishonored
      by the acceptor is the same as the obligation of an endorser under
      section 554.3415, subsections 1 and 3.
         5.  If a draft states that it is drawn "without recourse" or
      otherwise disclaims liability of the drawer to pay the draft, the
      drawer is not liable under subsection 2 to pay the draft if the draft
      is not a check.  A disclaimer of the liability stated in subsection 2
      is not effective if the draft is a check.
         6.  If (i) a check is not presented for payment or given to a
      depositary bank for collection within thirty days after its date,
      (ii) the drawee suspends payments after expiration of the thirty-day
      period without paying the check, and (iii) because of the suspension
      of payments, the drawer is deprived of funds maintained with the
      drawee to cover payment of the check, the drawer to the extent
      deprived of funds may discharge its obligation to pay the check by
      assigning to the person entitled to enforce the check the rights of
      the drawer against the drawee with respect to the funds.  

         94 Acts, ch 1167, §61, 121, 122
         Referred to in § 554.3413, 554.3503, 554.3605, 554.5108