2006 New York Code - Drafts In A Set.



 
  Section 3--801. Drafts in a Set.
    (1)  Where  a  draft  is  drawn  in  a  set of parts, each of which is
  numbered and expressed to be an order only if no  other  part  has  been
  honored, the whole of the parts constitutes one draft but a taker of any
  part may become a holder in due course of the draft.
    (2)  Any person who negotiates, indorses or accepts a single part of a
  draft drawn in a set thereby becomes liable to any holder in due  course
  of  that  part  as  if  it  were the whole set, but as between different
  holders in due course to whom different parts have been  negotiated  the
  holder  whose  title  first  accrues has all rights to the draft and its
  proceeds.
    (3) As against the drawee the first presented part of a draft drawn in
  a set is the part entitled to payment, or if a time draft to  acceptance
  and  payment.  Acceptance of any subsequently presented part renders the
  drawee liable thereon under subsection  (2).  With  respect  both  to  a
  holder  and  to the drawer payment of a subsequently presented part of a
  draft payable at sight has  the  same  effect  as  payment  of  a  check
  notwithstanding an effective stop order (Section 4--407).
    (4)  Except as otherwise provided in this section, where any part of a
  draft in a set is discharged by payment or otherwise the whole draft  is
  discharged.

Disclaimer: These codes may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.