2010 Pennsylvania Code
Title 13 - COMMERCIAL CODE
Chapter 34 - Liability of Parties
3415 - Obligation of indorser.

     § 3415.  Obligation of indorser.
        (a)  General rule.--Subject to subsections (b), (c) and (d)
     and to section 3419(d) (relating to instruments signed for
     accommodation), if an instrument is dishonored, an indorser is
     obliged to pay the amount due on the instrument:
            (1)  according to the terms of the instrument at the time
        it was indorsed; or
            (2)  if the indorser indorsed an incomplete instrument,
        according to its terms when completed, to the extent stated
        in sections 3115 (relating to incomplete instrument) and 3407
        (relating to alteration).
     The obligation of the indorser is owed to a person entitled to
     enforce the instrument or to a subsequent indorser who paid the
     instrument under this section.
        (b)  Disclaimer of liability.--If an indorsement states that
     it is made "without recourse" or otherwise disclaims liability
     of the indorser, the indorser is not liable under subsection (a)
     to pay the instrument.
        (c)  Notice of dishonor.--If notice of dishonor of an
     instrument is required by section 3503 (relating to notice of
     dishonor) and notice of dishonor complying with that section is
     not given to an indorser, the liability of the indorser under
     subsection (a) is discharged.
        (d)  Draft accepted by bank.--If a draft is accepted by a
     bank after an indorsement is made, the liability of the indorser
     under subsection (a) is discharged.
        (e)  Discharge of liability.--If an indorser of a check is
     liable under subsection (a) and the check is not presented for
     payment, or given to a depositary bank for collection, within 30
     days after the day the indorsement was made, the liability of
     the indorser under subsection (a) is discharged.

        Cross References.  Section 3415 is referred to in sections
     3412, 3413, 3414, 3503, 5108 of this title.