2006 Ohio Revised Code - 1303.52. (UCC 3-412) Obligation of issuer of note or cashier\'s check.

§ 1303.52. (UCC 3-412) Obligation of issuer of note or cashier's check.
 

The issuer of a noticeÅ or cashier's check or other draft drawn on the drawer is obliged to pay the instrument in accordance with either of the following: 

(A) 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; 

(B) If the issuer signed an incomplete instrument, according to its terms when completed in accordance with sections 1303.11 and 1303.50 of the Revised Code. The obligation is owed to a person entitled to enforce the instrument or to an indorser who paid the instrument under section 1303.55 of the Revised Code. 
 

HISTORY: 145 v S 147. Eff 8-19-94.
 

Å UCC 3-412 reads "note," rather than "notice." 
 

Not analogous to former RC § 1303.52 (129 v S 5), repealed 145 v S 147, § 2, eff 8-19-94.

 

Official Comment

1. The obligations of the maker, acceptor, drawer, and indorser are stated in four separate sections. Section 3-412 states the obligation of the maker of a note and is consistent with former section 3-413(1). Section 3-412 also applies to the issuer of a cashier's check or other draft drawn on the drawer.  Under former section 3-118(a), since a cashier's check or other draft drawn on the drawer was "effective as a note," the drawer was liable under former section 3-413(1) as a maker.  Under sections 3-103(a)(6) and 3-104(f) a cashier's check or other draft drawn on the drawer is treated as a draft to reflect common commercial usage, but the liability of the drawer is stated by section 3-412 as being the same as that of the maker of a note rather than that of the drawer of a draft.  Thus, section 3-412 does not in substance change former law. 

2.  Under section 3-105(b) nonissuance of either a complete or incomplete instrument is a defense by a maker or drawer against a person that is not a holder in due course. 

3.  The obligation of the maker may be modified in the case of alteration if, under section 3-406, the maker is precluded from asserting the alteration.