reglab/statecodes huggingface dataset:
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-205. - Special endorsement. Blank endorsement. Anomalous endorsement.

(a) If an endorsement is made by the holder of an instrument, whether payable to an identified person or payable to bearer, and the endorsement identifies a person to whom it makes the instrument payable, it is a “special endorsement”. When specially endorsed, an instrument becomes payable to the identified person and may be negotiated only by the endorsement of that person. The principles stated in section 42a-3-110 apply to special endorsements.
(b) If an endorsement is made by the holder of an instrument and is not a special endorsement, it is a “blank endorsement”. When endorsed in blank, an instrument becomes payable to bearer and may be negotiated by transfer of possession alone until specially endorsed.
(c) The holder may convert a blank endorsement that consists only of a signature into a special endorsement by writing, above the signature of the endorser, words identifying the person to whom the instrument is made payable.
(d) “Anomalous endorsement” means an endorsement made by a person who is not the holder of the instrument. An anomalous endorsement does not affect the manner in which the instrument may be negotiated.
(1959, P.A. 133, S. 3-205; P.A. 91-304, S. 24.)
History: P.A. 91-304 entirely replaced former provisions re restrictive endorsements with provisions re special, blank and anomalous endorsements, a restatement of Sec. 42a-3-204, revised to 1991.
See Sec. 42a-3-206 for successor provisions to Sec. 42a-3-205, revised to 1991, re restrictive endorsements.
Subsec. (d):
Any endorsement by a nonholder is an anomalous endorsement and does not affect negotiability of the instrument. 68 CA 716.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-207. - Reacquisition.

Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise. A former holder who reacquires the instrument may cancel endorsements made after the reacquirer first became a holder of the instrument. If the cancellation causes the instrument to be payable to the reacquirer or to bearer, the reacquirer may negotiate the instrument. An endorser whose endorsement is cancelled is discharged, and the discharge is effective against any subsequent holder.
(1959, P.A. 133, S. 3-207; P.A. 91-304, S. 26.)
History: P.A. 91-304 entirely replaced former provisions re the effectiveness of a negotiation subject to rescission with provisions re reacquisition of an instrument, a restatement of Sec. 42a-3-208, revised to 1991.
See Sec. 42a-3-202 for successor provisions to Sec. 42a-3-207, revised to 1991, re negotiation subject to rescission.
Cited. 208 C. 248.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-301. - Person entitled to enforce instrument.

“Person entitled to enforce” an instrument means (i) the holder of the instrument, (ii) a nonholder in possession of the instrument who has the rights of a holder, or (iii) a person not in possession of the instrument who is entitled to enforce the instrument pursuant to section 42a-3-309 or 42a-3-418(d). A person may be a person entitled to enforce the instrument even though the person is not the owner of the instrument or is in wrongful possession of the instrument.
(1959, P.A. 133, S. 3-301; P.A. 91-304, S. 27.)
History: P.A. 91-304 entirely replaced former provisions re rights of a holder to transfer, negotiate, enforce or discharge an instrument with provisions defining a person entitled to enforce an instrument.
Cited. 238 C. 745. Loan servicer for owner and holder of a note and mortgage had standing in its own right to institute a foreclosure action against mortgagor as a transferee of the holder's rights. 309 C. 307.
Cited. 4 CA 376; 35 CA 326.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-303. - Value and consideration.

(a) An instrument is issued or transferred for value if:
(1) The instrument is issued or transferred for a promise of performance, to the extent the promise has been performed;
(2) The transferee acquires a security interest or other lien in the instrument other than a lien obtained by judicial proceeding;
(3) The instrument is issued or transferred as payment of, or as security for, an antecedent claim against any person, whether or not the claim is due;
(4) The instrument is issued or transferred in exchange for a negotiable instrument; or
(5) The instrument is issued or transferred in exchange for the incurring of an irrevocable obligation to a third party by the person taking the instrument.
(b) “Consideration” means any consideration sufficient to support a simple contract. The drawer or maker of an instrument has a defense if the instrument is issued without consideration. If an instrument is issued for a promise of performance, the issuer has a defense to the extent performance of the promise is due and the promise has not been performed. If an instrument is issued for value as stated in subsection (a), the instrument is also issued for consideration.
(1959, P.A. 133, S. 3-303; P.A. 91-304, S. 29.)
History: P.A. 91-304 substantially revised provisions re when an instrument is issued or transferred for value and added Subsec. (b) re consideration.
Cited. 187 C. 637; 242 C. 17.
Bank which provisionally credits deposit against overdrawn account gives “value”; deposit as “value” discussed. 33 CS 641.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-304. - Overdue instrument.

(a) An instrument payable on demand becomes overdue at the earliest of the following times:
(1) On the day after the day demand for payment is duly made;
(2) If the instrument is a check, ninety days after its date; or
(3) If the instrument is not a check, when the instrument has been outstanding for a period of time after its date which is unreasonably long under the circumstances of the particular case in light of the nature of the instrument and usage of the trade.
(b) With respect to an instrument payable at a definite time the following rules apply:
(1) If the principal is payable in installments and a due date has not been accelerated, the instrument becomes overdue upon default under the instrument for nonpayment of an installment, and the instrument remains overdue until the default is cured.
(2) If the principal is not payable in installments and the due date has not been accelerated, the instrument becomes overdue on the day after the due date.
(3) If a due date with respect to principal has been accelerated, the instrument becomes overdue on the day after the accelerated due date.
(c) Unless the due date of principal has been accelerated, an instrument does not become overdue if there is default in payment of interest but no default in payment of principal.
(1959, P.A. 133, S. 3-304; P.A. 91-304, S. 30.)
History: P.A. 91-304 substantially revised provisions of former Subsecs. (3) and (4)(f) re overdue instruments and deleted remainder of former provisions re when the purchaser has notice of a claim or defense.
See Sec. 42a-3-302(a)(1), 42a-3-302(a)(2)(iii), 42a-3-302(b) and 42a-3-307 for successor provisions to Sec. 42a-3-304, revised to 1991, re when a purchaser has notice of a claim or defense.
Cited. 182 C. 437; 185 C. 463; 231 C. 441.
Where plaintiff bank had no notice of complaint of defendant as to performance by freezer-food company of underlying contract at time it bought the note, this defense could not be raised against plaintiff, a payee holder in due course. 4 Conn. Cir. Ct. 620. Cited. 5 Conn. Cir. Ct. 413.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-306. - Claims to an instrument.

A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a property or possessory right in the instrument or its proceeds, including a claim to rescind a negotiation and to recover the instrument or its proceeds. A person having rights of a holder in due course takes free of the claim to the instrument.
(1959, P.A. 133, S. 3-306; P.A. 91-304, S. 32.)
History: P.A. 91-304 revised former Subdiv. (a) re the claims to an instrument which a person not having the rights of a holder in due course is subject to and deleted former Subdivs. (b), (c) and (d) re the defenses which a person not having the rights of a holder in due course is subject to.
See Sec. 42a-3-305(a)(2) for successor provisions to Sec. 42a-3-306(b), revised to 1991, re defenses available in an action on a simple contract.
See Secs. 42a-3-105(b), 42a-3-303(b) and 42a-3-305(a)(2) for successor provisions to Sec. 42a-3-306(c), revised to 1991, re defenses of want or failure of consideration, nonperformance of any condition precedent, nondelivery or delivery for a special purpose.
See Sec. 42a-3-305(c) for successor provisions to Sec. 42a-3-306(d), revised to 1991, re defense that the instrument was acquired by theft.
Waiver of defense clause in consumer sales contract void as opposed to policy of section. 158 C. 543. Cited. 205 C. 604; 207 C. 483; 217 C. 205; 240 C. 10.
Cited. 33 CS 641.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-307. - Notice of breach of fiduciary duty.

(a) In this section:
(1) “Fiduciary” means an agent, trustee, partner, corporate officer or director, or other representative owing a fiduciary duty with respect to an instrument.
(2) “Represented person” means the principal, beneficiary, partnership, limited liability company, corporation, or other person to whom the duty stated in paragraph (1) is owed.
(b) If (i) an instrument is taken from a fiduciary for payment or collection or for value, (ii) the taker has knowledge of the fiduciary status of the fiduciary, and (iii) the represented person makes a claim to the instrument or its proceeds on the basis that the transaction of the fiduciary is a breach of fiduciary duty, the following rules apply:
(1) Notice of breach of fiduciary duty by the fiduciary is notice of the claim of the represented person.
(2) In the case of an instrument payable to the represented person or the fiduciary as such, the taker has notice of the breach of fiduciary duty if the instrument is (i) taken in payment of or as security for a debt known by the taker to be the personal debt of the fiduciary, (ii) taken in a transaction known by the taker to be for the personal benefit of the fiduciary, or (iii) deposited to an account other than an account of the fiduciary, as such, or an account of the represented person.
(3) If an instrument is issued by the represented person or the fiduciary as such, and made payable to the fiduciary personally, the taker does not have notice of the breach of fiduciary duty unless the taker knows of the breach of fiduciary duty.
(4) If an instrument is issued by the represented person or the fiduciary as such, to the taker as payee, the taker has notice of the breach of fiduciary duty if the instrument is (i) taken in payment of or as security for a debt known by the taker to be the personal debt of the fiduciary, (ii) taken in a transaction known by the taker to be for the personal benefit of the fiduciary, or (iii) deposited to an account other than an account of the fiduciary, as such, or an account of the represented person.
(1959, P.A. 133, S. 3-307; P.A. 91-304, S. 33; P.A. 95-79, S. 165, 189.)
History: P.A. 91-304 entirely replaced former provisions re burden of establishing signatures, defenses and holder in due course status with provisions re notice of breach of fiduciary duty; P.A. 95-79 redefined “represented person” to include a limited liability company, effective May 31, 1995.
See Sec. 42a-3-308 for successor provisions to Sec. 42-3-307, revised to 1991, re proof of signatures, defenses and holder in due course status.
Cited. 182 C. 530; 187 C. 637; 189 C. 591; 230 C. 779; 242 C. 17.
Cited. 1 CA 162; 4 CA 102.
Cited. 33 CS 641. Special defense was sufficient to put effectiveness of signature in issue; failure to object to evidence waived any objection of variance or improper pleading; Sec. 52-93 compared; authority of agent to sign note; burden of proof. Id., 654.
Cited. 6 Conn. Cir. Ct. 547.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-308. - Proof of signatures and status as holder in due course.

(a) In an action with respect to an instrument, the authenticity of, and authority to make, each signature on the instrument is admitted unless specifically denied in the pleadings. If the validity of a signature is denied in the pleadings, the burden of establishing validity is on the person claiming validity, but the signature is presumed to be authentic and authorized unless the action is to enforce the liability of the purported signer and the signer is dead or incompetent at the time of trial of the issue of validity of the signature. If an action to enforce the instrument is brought against a person as the undisclosed principal of a person who signed the instrument as a party to the instrument, the plaintiff has the burden of establishing that the defendant is liable on the instrument as a represented person under section 42a-3-402(a).
(b) If the validity of signatures is admitted or proved and there is compliance with subsection (a), a plaintiff producing the instrument is entitled to payment if the plaintiff proves entitlement to enforce the instrument under section 42a-3-301, unless the defendant proves a defense or claim in recoupment. If a defense or claim in recoupment is proved, the right to payment of the plaintiff is subject to the defense or claim, except to the extent the plaintiff proves that the plaintiff has rights of a holder in due course which are not subject to the defense or claim.
(P.A. 91-304, S. 34.)
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-309. - Enforcement of lost, destroyed or stolen instrument.

(a) A person not in possession of an instrument is entitled to enforce the instrument if (i) the person was in possession of the instrument and entitled to enforce it when loss of possession occurred, (ii) the loss of possession was not the result of a transfer by the person or a lawful seizure, and (iii) the person cannot reasonably obtain possession of the instrument because the instrument was destroyed, its whereabouts cannot be determined, or it is in the wrongful possession of an unknown person or a person that cannot be found or is not amenable to service of process.
(b) A person seeking enforcement of an instrument under subsection (a) must prove the terms of the instrument and the person's right to enforce the instrument. If that proof is made, section 42a-3-308 applies to the case as if the person seeking enforcement had produced the instrument. The court may not enter judgment in favor of the person seeking enforcement unless it finds that the person required to pay the instrument is adequately protected against loss that might occur by reason of a claim by another person to enforce the instrument. Adequate protection may be provided by any reasonable means.
(P.A. 91-304, S. 35.)
Cited. 238 C. 745.
There is no specific requirement that proponent of a lost note produce an affidavit detailing how the instrument was lost; photocopy of note was acceptable where there was no evidence that it was not an accurate copy. 140 CA 827. Subsec. (a): The only person who can enforce note is the person in possession of note when it was lost. 185 CA 534. Plaintiff does not have standing and is not entitled to enforce a note as a successor pursuant to an order of attachment and garnishment issued by a court if she does not have possession of the note and meet the requirements of this section. 199 CA 734.
Cited. 44 CS 464.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-310. - Effect of instrument on obligation for which taken.

(a) Unless otherwise agreed, if a certified check, cashier's check or teller's check is taken for an obligation, the obligation is discharged to the same extent discharge would result if an amount of money equal to the amount of the instrument were taken in payment of the obligation. Discharge of the obligation does not affect any liability that the obligor may have as an endorser of the instrument.
(b) Unless otherwise agreed and except as provided in subsection (a), if a note or an uncertified check is taken for an obligation, the obligation is suspended to the same extent the obligation would be discharged if an amount of money equal to the amount of the instrument were taken, and the following rules apply:
(1) In the case of an uncertified check, suspension of the obligation continues until dishonor of the check or until it is paid or certified. Payment or certification of the check results in discharge of the obligation to the extent of the amount of the check.
(2) In the case of a note, suspension of the obligation continues until dishonor of the note or until it is paid. Payment of the note results in discharge of the obligation to the extent of the payment.
(3) Except as provided in paragraph (4), if the check or note is dishonored and the obligee of the obligation for which the instrument was taken is the person entitled to enforce the instrument, the obligee may enforce either the instrument or the obligation. In the case of an instrument of a third person which is negotiated to the obligee by the obligor, discharge of the obligor on the instrument also discharges the obligation.
(4) If the person entitled to enforce the instrument taken for an obligation is a person other than the obligee, the obligee may not enforce the obligation to the extent the obligation is suspended. If the obligee is the person entitled to enforce the instrument but no longer has possession of it because it was lost, stolen, or destroyed, the obligation may not be enforced to the extent of the amount payable on the instrument, and to that extent the obligee's rights against the obligor are limited to enforcement of the instrument.
(c) If an instrument other than one described in subsection (a) or (b) is taken for an obligation, the effect is (i) that stated in subsection (a) if the instrument is one on which a bank is liable as maker or acceptor, or (ii) that stated in subsection (b) in any other case.
(P.A. 91-304, S. 36.)
Cited. 231 C. 441.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-311. - Accord and satisfaction by use of instrument.

(a) If a person against whom a claim is asserted proves that (i) that person in good faith tendered an instrument to the claimant as full satisfaction of the claim, (ii) the amount of the claim was unliquidated or subject to a bona fide dispute, and (iii) the claimant obtained payment of the instrument, the following subsections apply.
(b) Unless subsection (c) applies, the claim is discharged if the person against whom the claim is asserted proves that the instrument or an accompanying written communication contained a conspicuous statement to the effect that the instrument was tendered as full satisfaction of the claim.
(c) Subject to subsection (d), a claim is not discharged under subsection (b) if either of the following applies:
(1) The claimant, if an organization, proves that (i) within a reasonable time before the tender, the claimant sent a conspicuous statement to the person against whom the claim is asserted that communications concerning disputed debts, including an instrument tendered as full satisfaction of a debt, are to be sent to a designated person, office, or place, and (ii) the instrument or accompanying communication was not received by that designated person, office, or place.
(2) The claimant, whether or not an organization, proves that within ninety days after payment of the instrument, the claimant tendered repayment of the amount of the instrument to the person against whom the claim is asserted. This paragraph does not apply if the claimant is an organization that sent a statement complying with paragraph (1)(i).
(d) A claim is discharged if the person against whom the claim is asserted proves that within a reasonable time before collection of the instrument was initiated, the claimant, or an agent of the claimant having direct responsibility with respect to the disputed obligation, knew that the instrument was tendered in full satisfaction of the claim.
(P.A. 91-304, S. 37.)
Cited. 236 C. 750.
Subsec. (a):
Defendants' letter stating that check was tendered as full satisfaction of their indebtedness had no legal effect since there was no basis for a good faith dispute about defendants' indebtedness to plaintiff or about the amount of defendants' indebtedness for interest. 72 CA 319.
Subsec. (d):
Section's plain and unambiguous language does not afford debtor an independent means of proving accord and satisfaction. 98 CA 784.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-401. - Signature.

(a) A person is not liable on an instrument unless (i) the person signed the instrument, or (ii) the person is represented by an agent or representative who signed the instrument and the signature is binding on the represented person under section 42a-3-402.
(b) A signature may be made (i) manually or by means of a device or machine, and (ii) by the use of any name, including a trade or assumed name, or by a word, mark, or symbol executed or adopted by a person with present intention to authenticate a writing.
(1959, P.A. 133, S. 3-401; P.A. 91-304, S. 38.)
History: P.A. 91-304 replaced numeric Subsec. indicators with alphabetic Subsec. indicators, amended Subsec. (a) to revise provisions and add provision re signature by agent or represented person and amended Subsec. (b) to revise provisions and add provision authorizing a signature to be made manually or by means of a device or machine.
Subsec. (b): Bank can use any mark to manifest its intent to create an endorsement through a signature, and the name of a former employee falls within the category of “any name, including a trade or assumed name, or by a word, mark, or symbol”, thus stamped signature on note meets the signature requirements for negotiable instruments under section. 197 CA 129.
Cited. 32 CS 178.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-402. - Signature by representative.

(a) If a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person or the name of the signer, the represented person is bound by the signature to the same extent the represented person would be bound if the signature were on a simple contract. If the represented person is bound, the signature of the representative is the “authorized signature of the represented person” and the represented person is liable on the instrument, whether or not identified in the instrument.
(b) If a representative signs the name of the representative to an instrument and the signature is an authorized signature of the represented person, the following rules apply:
(1) If the form of the signature shows unambiguously that the signature is made on behalf of the represented person who is identified in the instrument, the representative is not liable on the instrument.
(2) Subject to subsection (c), if (i) the form of the signature does not show unambiguously that the signature is made in a representative capacity or (ii) the represented person is not identified in the instrument, the representative is liable on the instrument to a holder in due course that took the instrument without notice that the representative was not intended to be liable on the instrument. With respect to any other person, the representative is liable on the instrument unless the representative proves that the original parties did not intend the representative to be liable on the instrument.
(c) If a representative signs the name of the representative as drawer of a check without indication of the representative status and the check is payable from an account of the represented person who is identified on the check, the signer is not liable on the check if the signature is an authorized signature of the represented person.
(1959, P.A. 133, S. 3-402; P.A. 91-304, S. 39.)
History: P.A. 91-304 entirely replaced former provisions re when a signature is an endorsement with provisions re signature by a representative, a restatement of Sec. 42a-3-403, revised to 1991.
See Sec. 42a-3-204(a) for successor provisions to Sec. 42a-3-402, revised to 1991, re when a signature is an endorsement.
Cited. 203 C. 394.
Cited. 32 CS 178; 33 CS 181.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-403. - Unauthorized signature.

(a) Unless otherwise provided in this article or article 4, an unauthorized signature is ineffective except as the signature of the unauthorized signer in favor of a person who in good faith pays the instrument or takes it for value. An unauthorized signature may be ratified for all purposes of this article.
(b) If the signature of more than one person is required to constitute the authorized signature of an organization, the signature of the organization is unauthorized if one of the required signatures is lacking.
(c) The civil or criminal liability of a person who makes an unauthorized signature is not affected by any provision of this article which makes the unauthorized signature effective for the purposes of this article.
(1959, P.A. 133, S. 3-403; P.A. 91-304, S. 40.)
History: P.A. 91-304 entirely replaced former provisions re signature by authorized representative with provisions re unauthorized signature, a restatement of Sec. 42a-3-404, revised to 1991, provisions re unauthorized signature of an organization and provisions re civil or criminal liability, a restatement of Sec. 42a-3-405(2), revised to 1991.
See Sec. 42a-3-402(a) and (b) for successor provisions to Sec. 42a-3-403, revised to 1991, re signature by authorized representative.
Cited. 171 C. 63; 208 C. 248; 218 C. 162.
Cited. 15 CA 90.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-404. - Impostors. Fictitious payees.

(a) If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or to a person acting in concert with the impostor, by impersonating the payee of the instrument or a person authorized to act for the payee, an endorsement of the instrument by any person in the name of the payee is effective as the endorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.
(b) If (i) a person whose intent determines to whom an instrument is payable, as provided in subsection (a) or (b) of section 42a-3-110, does not intend the person identified as payee to have any interest in the instrument, or (ii) the person identified as payee of an instrument is a fictitious person, the following rules apply until the instrument is negotiated by special endorsement:
(1) Any person in possession of the instrument is its holder.
(2) An endorsement by any person in the name of the payee stated in the instrument is effective as the endorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.
(c) Under subsection (a) or (b), an endorsement is made in the name of a payee if (i) it is made in a name substantially similar to that of the payee or (ii) the instrument, whether or not endorsed, is deposited in a depositary bank to an account in a name substantially similar to that of the payee.
(d) With respect to an instrument to which subsection (a) or (b) applies, if a person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss resulting from payment of the instrument, the person bearing the loss may recover from the person failing to exercise ordinary care to the extent the failure to exercise ordinary care contributed to the loss.
(1959, P.A. 133, S. 3-404; P.A. 91-304, S. 41; May Sp. Sess. P.A. 92-11, S. 17, 70.)
History: P.A. 91-304 entirely replaced former provisions re unauthorized signatures with provisions re impostors and fictitious payees, a restatement in part of Sec. 42a-3-405(1)(a) and (b), revised to 1991; May Sp. Sess. P.A. 92-11 made technical changes in Subsecs. (b) and (c).
See Sec. 42a-3-403(a) for successor provisions to Sec. 42a-3-404, revised to 1991, re unauthorized signatures.
Cited. 171 C. 63.
Cited. 34 CS 606.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-406. - Negligence contributing to forged signature or alteration of instrument.

(a) A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged signature on an instrument is precluded from asserting the alteration or the forgery against a person who, in good faith, pays the instrument or takes it for value or for collection.
(b) Under subsection (a), if the person asserting the preclusion fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss, the loss is allocated between the person precluded and the person asserting the preclusion according to the extent to which the failure of each to exercise ordinary care contributed to the loss.
(c) Under subsection (a), the burden of proving failure to exercise ordinary care is on the person asserting the preclusion. Under subsection (b), the burden of proving failure to exercise ordinary care is on the person precluded.
(1959, P.A. 133, S. 3-406; P.A. 91-304, S. 43.)
History: P.A. 91-304 substantially revised former provisions and added Subsec. (b) re allocation of loss and Subsec. (c) re burden of proof.
Cited. 164 C. 604. “Negligence” in section means the failure to exercise “reasonable” and “ordinary” care, i.e. whether a prudent person would have foreseen the danger of forgery as a result of his action. 167 C. 478. Cited. 170 C. 691; 187 C. 637; 242 C. 17.
Cited. 2 CA 110.
Cited. 39 CS 240.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-407. - Alteration.

(a) “Alteration” means (i) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (ii) an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party.
(b) Except as provided in subsection (c), an alteration fraudulently made discharges a party whose obligation is affected by the alteration unless that party assents or is precluded from asserting the alteration. No other alteration discharges a party, and the instrument may be enforced according to its original terms.
(c) A payor bank or drawee paying a fraudulently altered instrument or a person taking it for value, in good faith and without notice of the alteration, may enforce rights with respect to the instrument (i) according to its original terms, or (ii) in the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed.
(1959, P.A. 133, S. 3-407; P.A. 91-304, S. 44.)
History: P.A. 91-304 substantially revised section and replaced numeric Subsec. indicators with alphabetic Subsec. indicators.
Cited. 156 C. 243; 202 C. 277; 233 C. 304; Id., 352; 242 C. 17.
Plaintiff bank is holder in due course of note sold to it by freezer-food company based on contract negotiated by company with defendant; defense that note did not have any sum entered on it when signed by defendants is not available against plaintiff holder in due course. 4 Conn. Cir. Ct. 620. Cited. Id., 625. Defendant endorser who consented to insertions and alterations of checks is disqualified from attacking their validity and his liability thereon. 5 Conn. Cir. Ct. 405.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-408. - Drawee not liable on unaccepted draft.

A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the drawee accepts it.
(1959, P.A. 133, S. 3-408; P.A. 91-304, S. 45.)
History: P.A. 91-304 entirely replaced former provisions re lack or failure of consideration with provisions re liability of a drawee on unaccepted draft, a restatement of Sec. 42a-3-409(1), revised to 1991.
See Sec. 42a-3-303(b) for successor provisions to Sec. 42a-3-408, revised to 1991, re consideration.
Instrument negotiable in form is deemed prima facie issued for valuable consideration and burden of proving absence or failure of same is on defendant. 149 C. 558. Cited. 151 C. 566. Party asserting lack of consideration has burden of establishing it by preponderance of the evidence. Id., 606. Cited. 240 C. 10.
Cited. 1 CA 162.
Broker is entitled to his commission when he has produced customer ready, able and willing to purchase; hence plaintiff's threat he would not go through with sale and defendant broker would lose her commission unless she signed note he is now suing her on, was no consideration for note. 4 Conn. Cir. Ct. 665.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-409. - Acceptance of draft. Certified check.

(a) “Acceptance” means the drawee's signed agreement to pay a draft as presented. It must be written on the draft and may consist of the drawee's signature alone. Acceptance may be made at any time and becomes effective when notification pursuant to instructions is given or the accepted draft is delivered for the purpose of giving rights on the acceptance to any person.
(b) A draft may be accepted although it has not been signed by the drawer, is otherwise incomplete, is overdue or has been dishonored.
(c) If a draft is payable at a fixed period after sight and the acceptor fails to date the acceptance, the holder may complete the acceptance by supplying a date in good faith.
(d) “Certified check” means a check accepted by the bank on which it is drawn. Acceptance may be made as stated in subsection (a) or by a writing on the check which indicates that the check is certified. The drawee of a check has no obligation to certify the check, and refusal to certify is not dishonor of the check.
(1959, P.A. 133, S. 3-409; P.A. 91-304, S. 46.)
History: P.A. 91-304 entirely replaced former provisions re assignment of funds in hands of drawee and liability of drawee on unaccepted instrument with provisions re acceptance of a draft, a restatement of Sec. 42a-3-410, revised to 1991, and a definition of “certified check”.
See Sec. 42a-3-408 for successor provisions to Sec. 42a-3-409(1), revised to 1991, re assignment of funds in hands of drawee and liability of drawee on unaccepted instrument.
Fact that bank has supervised and assisted credit status of drawer company does not affect its status toward drawee of checks of company. 5 Conn. Cir. Ct. 393.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-410. - Acceptance varying draft.

(a) If the terms of a drawee's acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat the draft as dishonored. In that case, the drawee may cancel the acceptance.
(b) The terms of a draft are not varied by an acceptance to pay at a particular bank or place in the United States, unless the acceptance states that the draft is to be paid only at that bank or place.
(c) If the holder assents to an acceptance varying the terms of a draft, the obligation of each drawer and endorser that does not expressly assent to the acceptance is discharged.
(1959, P.A. 133, S. 3-410; P.A. 91-304, S. 47.)
History: P.A. 91-304 entirely replaced former provisions re acceptance of a draft with provisions re an acceptance which varies the terms of a draft, a restatement of Sec. 42a-3-412, revised to 1991.
See Sec. 42a-3-409(a), (b) and (c) for successor provisions to Sec. 42a-3-410, revised to 1991, re acceptance of a draft.
Cashier's check, in which issuing bank is both drawer and drawee, is considered accepted when issued to payee, who may also be the purchaser, and is equivalent to a negotiable promissory note payable on demand. 33 CS 641.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-411. - Refusal to pay cashier's checks, teller's checks and certified checks.

(a) In this section, “obligated bank” means the acceptor of a certified check or the issuer of a cashier's check or teller's check bought from the issuer.
(b) If the obligated bank wrongfully (i) refuses to pay a cashier's check or certified check, (ii) stops payment of a teller's check, or (iii) refuses to pay a dishonored teller's check, the person asserting the right to enforce the check is entitled to compensation for expenses and loss of interest resulting from the nonpayment and may recover consequential damages if the obligated bank refuses to pay after receiving notice of particular circumstances giving rise to the damages.
(c) Expenses or consequential damages under subsection (b) are not recoverable if the refusal of the obligated bank to pay occurs because (i) the bank suspends payments, (ii) the obligated bank asserts a claim or defense of the bank that it has reasonable grounds to believe is available against the person entitled to enforce the instrument, (iii) the obligated bank has a reasonable doubt whether the person demanding payment is the person entitled to enforce the instrument, or (iv) payment is prohibited by law.
(1959, P.A. 133, S. 3-411; P.A. 91-304, S. 48.)
History: P.A. 91-304 entirely replaced former provisions re certification of a check with provisions re refusal to pay a cashier's check, teller's check or certified check.
See Secs. 42a-3-409(d), 42a-3-414(c) and 42a-3-415(d) for successor provisions to Sec. 42a-3-411, revised to 1991, re certification of a check.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-412. - Obligation of issuer of note or cashier's check.

The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument (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 issuer signed an incomplete instrument, according to its terms when completed, to the extent stated in sections 42a-3-115 and 42a-3-407. The obligation is owed to a person entitled to enforce the instrument or to an endorser who paid the instrument under section 42a-3-415.
(1959, P.A. 133, S. 3-412; 1963, P.A. 526, S. 5; P.A. 91-304, S. 49.)
History: 1963 act deleted word “continental” referring to “United States” in Subsec. (2); P.A. 91-304 entirely replaced former provisions re an acceptance which varies the terms of a draft with provisions re the obligation of the issuer of a note or cashier's check, a restatement in part of Sec. 42a-3-413(1), revised to 1991.
See Sec. 42a-3-410 for successor provisions to Sec. 42a-3-412, revised to 1991, re an acceptance which varies the terms of a draft.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-413. - Obligation of acceptor.

(a) The acceptor of a draft is obliged to pay the draft (i) according to its terms at the time it was accepted, even though the acceptance states that the draft is payable “as originally drawn” or equivalent terms, (ii) if the acceptance varies the terms of the draft, according to the terms of the draft as varied, or (iii) if the acceptance is of a draft that is an incomplete instrument, according to its terms when completed, to the extent stated in sections 42a-3-115 and 42a-3-407. The obligation is owed to a person entitled to enforce the draft or to the drawer or an endorser who paid the draft under section 42a-3-414 or 42a-3-415.
(b) If the certification of a check or other acceptance of a draft states the amount certified or accepted, the obligation of the acceptor is that amount. If (i) the certification or acceptance does not state an amount, (ii) the amount of the instrument is subsequently raised, and (iii) the instrument is then negotiated to a holder in due course, the obligation of the acceptor is the amount of the instrument at the time it was taken by the holder in due course.
(1959, P.A. 133, S. 3-413; P.A. 91-304, S. 50.)
History: P.A. 91-304 substantially revised former Subsec. (1) re the obligation of an acceptor to pay the draft, deleted Subsec. (2) re the obligation of the drawer and deleted Subsec. (3) re the admission of the existence of the payee and his capacity to endorse.
See Sec. 42a-3-412 for successor provisions to Sec. 42a-3-413(1), revised to 1991, re the obligation of the issuer of a note or cashier's check.
See Sec. 42a-3-414(b) and (e) for successor provisions to Sec. 42a-3-413(2), revised to 1991, re the obligation of the drawer.
Cited. 179 C. 349; 189 C. 591; 202 C. 277; 205 C. 604; 208 C. 248; 218 C. 162.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-414. - Obligation of drawer.

(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 (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 42a-3-115 and 42a-3-407. The obligation is owed to a person entitled to enforce the draft or to an endorser who paid the draft under section 42a-3-415.
(c) If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained.
(d) 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 subsections (a) and (c) of section 42a-3-415.
(e) 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 (b) to pay the draft if the draft is not a check. A disclaimer of the liability stated in subsection (b) is not effective if the draft is a check.
(f) 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.
(1959, P.A. 133, S. 3-414; P.A. 91-304, S. 51.)
History: P.A. 91-304 entirely replaced former provisions re contract of endorser to pay the instrument with provisions re obligation of drawer.
See Sec. 42a-3-415(a) and (b) for successor provisions to Sec. 42a-3-414(1), revised to 1991, re obligation of endorser upon dishonor.
Cited. 193 C. 304; 202 C. 277; 203 C. 394.
Cited. 32 CS 172; 33 CS 179.
2023 Connecticut General Statutes › Title 42a - Uniform Commercial Code › Article 3 - Negotiable Instruments › Section 42a-3-415. - Obligation of endorser.

(a) Subject to subsections (b) to (e), inclusive, of this section and to section 42a-3-419(d), if an instrument is dishonored, an endorser is obliged to pay the amount due on the instrument (i) according to the terms of the instrument at the time it was endorsed, or (ii) if the endorser endorsed an incomplete instrument, according to its terms when completed, to the extent stated in sections 42a-3-115 and 42a-3-407. The obligation of the endorser is owed to a person entitled to enforce the instrument or to a subsequent endorser who paid the instrument under this section.
(b) If an endorsement states that it is made “without recourse” or otherwise disclaims liability of the endorser, the endorser is not liable under subsection (a) to pay the instrument.
(c) If notice of dishonor of an instrument is required by section 42a-3-503 and notice of dishonor complying with that section is not given to an endorser, the liability of the endorser under subsection (a) is discharged.
(d) If a draft is accepted by a bank after an endorsement is made, the liability of the endorser under subsection (a) is discharged.
(e) If an endorser 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 thirty days after the day the endorsement was made, the liability of the endorser under subsection (a) is discharged.
(1959, P.A. 133, S. 3-415; P.A. 91-304, S. 52; P.A. 96-180, S. 123, 166.)
History: P.A. 91-304 entirely replaced former provisions re contract of accommodation party with provisions re obligation of endorser, in part a restatement of Sec. 42a-3-414(1), revised to 1991; P.A. 96-180 made a technical change in Subsec. (a), effective June 3, 1996.
See Sec. 42a-3-419(a), (b), (c) and (e) for successor provisions to Sec. 42a-3-415 (1), (2), (4) and (5), respectively, revised to 1991, re an accommodation party.
Cited. 149 C. 164; 179 C. 349; 193 C. 304; 203 C. 407; 210 C. 734; 218 C. 162; 240 C. 10; 242 C. 17.
Cited. 26 CA 359.
Cited. 33 CS 182. Wife may be accommodation maker for husband. 35 CS 82.
Cited. 4 Conn. Cir. Ct. 214. Accommodation endorser's essential characteristic is that he is a surety and not that he has signed gratuitously. 5 Conn. Cir. Ct. 405.