reglab/statecodes huggingface dataset:
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3101 - Short Title; Article.

440.3101 Short title; article.
Sec. 3101.
This article shall be known and may be cited as "uniform commercial code—negotiable instruments".
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3102 - Scope; Limitations; Conflict of Laws.

440.3102 Scope; limitations; conflict of laws.
Sec. 3102.
(1) This article applies to negotiable instruments. It does not apply to money, to payment orders governed by article 4a, or to securities governed by article 8.
(2) If there is conflict between this article and article 4 or 9, articles 4 and 9 govern.
(3) Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of this article to the extent of the inconsistency.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3104 - Additional Definitions.

440.3104 Additional definitions.
Sec. 3104.
(1) Except as provided in subsections (3) and (4), "negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if all of the following apply:
(a) It is payable to bearer or to order at the time it is issued or first comes into possession of a holder.
(b) It is payable on demand or at a definite time.
(c) It does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain an undertaking or power to give, maintain, or protect collateral to secure payment, an authorization or power to the holder to confess judgment or realize on or dispose of collateral, or a waiver of the benefit of any law intended for the advantage or protection of an obligor.
(2) "Instrument" means a negotiable instrument.
(3) An order that meets all of the requirements of subsection (1), except subdivision (a), and otherwise falls within the definition of "check" in subsection (6) is a negotiable instrument and a check.
(4) A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this article.
(5) An instrument is a "note" if it is a promise and is a "draft" if it is an order. If an instrument falls within the definition of both "note" and "draft", a person entitled to enforce the instrument may treat it as either.
(6) "Check" means a draft, other than a documentary draft, payable on demand and drawn on a bank or a cashier's check or teller's check. An instrument may be a check even though it is described on its face by another term, such as "money order".
(7) "Cashier's check" means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.
(8) "Teller's check" means a draft drawn by a bank on another bank, or payable at or through a bank.
(9) "Traveler's check" means an instrument that is payable on demand, is drawn on or payable at or through a bank, is designated by the term "traveler's check" or by a substantially similar term, and requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument.
(10) "Certificate of deposit" means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3105 - “Issue” and “Issuer” Defined; Effect of Unissued or Conditionally Issued Instrument.

440.3105 “Issue” and “issuer” defined; effect of unissued or conditionally issued instrument.
Sec. 3105.
(1) "Issue" means the first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for the purpose of giving rights on the instrument to any person.
(2) An unissued instrument, or an unissued incomplete instrument that is completed, is binding on the maker or drawer, but nonissuance is a defense. An instrument that is conditionally issued or is issued for a special purpose is binding on the maker or drawer, but failure of the condition or special purpose to be fulfilled is a defense.
(3) "Issuer" applies to issued and unissued instruments and means a maker or drawer of an instrument.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1964, Act 250, Eff. Aug. 28, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3106 - Unconditional Status of Promise or Order.

440.3106 Unconditional status of promise or order.
Sec. 3106.
(1) Except as provided in this section, for the purposes of section 3104(1), a promise or order is unconditional unless it states 1 of the following:
(a) An express condition to payment.
(b) That the promise or order is subject to or governed by another record.
(c) That rights or obligations with respect to the promise or order are stated in another record. A reference to another record does not of itself make the promise or order conditional.
(2) A promise or order is not made conditional by or because of either of the following:
(a) By a reference to another record for a statement of rights with respect to collateral, prepayment, or acceleration.
(b) Because payment is limited to resort to a particular fund or source.
(3) If a promise or order requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the promise or order, the condition does not make the promise or order conditional for the purposes of section 3104(1). If the person whose specimen signature appears on an instrument fails to countersign the instrument, the failure to countersign is a defense to the obligation of the issuer, but the failure does not prevent a transferee of the instrument from becoming a holder of the instrument.
(4) If a promise or order at the time it is issued or first comes into possession of a holder contains a statement, required by applicable statutory or administrative law, to the effect that the rights of a holder or transferee are subject to claims or defenses that the issuer could assert against the original payee, the promise or order is not thereby made conditional for the purposes of section 3104(1); but if the promise or order is an instrument, there cannot be a holder in due course of the instrument.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993 ;-- Am. 2014, Act 101, Imd. Eff. Apr. 10, 2014
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3107 - Payment in Foreign Money.

440.3107 Payment in foreign money.
Sec. 3107.
Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in an equivalent amount in dollars calculated by using the current bank-offered spot rate at the place of payment for the purchase of dollars on the day on which the instrument is paid.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3108 - Instrument Payable on Demand, at Definite Time, or at Fixed Date.

440.3108 Instrument payable on demand, at definite time, or at fixed date.
Sec. 3108.
(1) A promise or order is "payable on demand" if it:
(a) States that it is payable on demand or at sight, or otherwise indicates that it is payable at the will of the holder.
(b) Does not state any time of payment.
(2) A promise or order is "payable at a definite time" if it is payable on elapse of a definite period of time after sight or acceptance or at a fixed date or dates or at a time or times readily ascertainable at the time the promise or order is issued, subject to rights of:
(a) Prepayment.
(b) Acceleration.
(c) Extension at the option of the holder.
(d) Extension to a further definite time at the option of the maker or acceptor or automatically upon or after a specified act or event.
(3) If an instrument, payable at a fixed date, is also payable upon demand made before the fixed date, the instrument is payable on demand until the fixed date and, if demand for payment is not made before that date, becomes payable at a definite time on the fixed date.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3109 - Promise or Order; Payable on Demand; Payable at Definite Time; Instrument Payable at Fixed Date.

440.3109 Promise or order; payable on demand; payable at definite time; instrument payable at fixed date.
Sec. 3109.
(1) A promise or order is payable to the bearer if it does any of the following:
(a) States that it is payable to bearer or to the order of bearer or otherwise indicates that the person in possession of the promise or order is entitled to payment.
(b) Does not state a payee.
(c) States that it is payable to or to the order of cash or otherwise indicates that it is not payable to an identified person.
(2) A promise or order that is not payable to bearer is payable to order if it is payable:
(a) To the order of an identified person.
(b) To an identified person or order. A promise or order that is payable to order is payable to the identified person.
(3) An instrument payable to bearer may become payable to an identified person if it is specially endorsed pursuant to section 3205(1). An instrument payable to an identified person may become payable to bearer if it is endorsed in blank pursuant to section 3205(2).
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3111 - Place of Payment.

440.3111 Place of payment.
Sec. 3111.
Except as otherwise provided for items in article 4, an instrument is payable at the place of payment stated in the instrument. If no place of payment is stated, an instrument is payable at the address of the drawee or maker stated in the instrument. If no address is stated, the place of payment is the place of business of the drawee or maker. If a drawee or maker has more than 1 place of business, the place of payment is any place of business of the drawee or maker chosen by the person entitled to enforce the instrument. If the drawee or maker has no place of business, the place of payment is the residence of the drawee or maker.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3112 - Interest.

440.3112 Interest.
Sec. 3112.
(1) Unless otherwise provided in the instrument:
(a) An instrument is not payable with interest.
(b) Interest on an interest-bearing instrument is payable from the date of the instrument.
(2) Interest may be stated in an instrument as a fixed or variable amount of money or it may be expressed as a fixed or variable rate or rates. The amount or rate of interest may be stated or described in the instrument in any manner and may require reference to information not contained in the instrument. If an instrument provides for interest, but the amount of interest payable cannot be ascertained from the description, interest is payable at the judgment rate in effect at the place of payment of the instrument and at the time interest first accrues.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1964, Act 250, Eff. Aug. 28, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3113 - Instrument Antedated, Postdated, or Undated.

440.3113 Instrument antedated, postdated, or undated.
Sec. 3113.
(1) An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable at a fixed period after date. Except as provided in section 4401(3), an instrument payable on demand is not payable before the date of the instrument.
(2) If an instrument is undated, its date is the date of its issue or, in the case of an unissued instrument, the date it first comes into possession of a holder.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3114 - Instrument; Contradictory Terms.

440.3114 Instrument; contradictory terms.
Sec. 3114.
If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3115 - Incomplete Instrument; Definition; Enforcement; Alteration; Burden.

440.3115 Incomplete instrument; definition; enforcement; alteration; burden.
Sec. 3115.
(1) "Incomplete instrument" means a signed writing, whether or not issued by the signer, the contents of which show at the time of signing that it is incomplete but that the signer intended it to be completed by the addition of words or numbers.
(2) Subject to subsection (3), if an incomplete instrument is an instrument under section 3104, it may be enforced according to its terms if it is not completed, or according to its terms as augmented by completion. If an incomplete instrument is not an instrument under section 3104, but, after completion, the requirements of section 3104 are met, the instrument may be enforced according to its terms as augmented by completion.
(3) If words or numbers are added to an incomplete instrument without authority of the signer, there is an alteration of the incomplete instrument under section 3407.
(4) The burden of establishing that words or numbers were added to an incomplete instrument without authority of the signer is on the person asserting the lack of authority.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3116 - Joint and Several Liability.

440.3116 Joint and several liability.
Sec. 3116.
(1) Except as otherwise provided in the instrument, 2 or more persons who have the same liability on an instrument as makers, drawers, acceptors, endorsers who endorse as joint payees, or anomalous endorsers are jointly and severally liable in the capacity in which they sign.
(2) Except as provided in section 3419(6) or by agreement of the affected parties, a party having joint and several liability who pay the instrument is entitled to receive from any party having the same joint and several liability contribution in accordance with applicable law.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993 ;-- Am. 2014, Act 101, Imd. Eff. Apr. 10, 2014
Compiler's Notes:
In subsection (2), “pay” evidently should read “pays.”
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3117 - Obligation Modified, Supplemented, or Nullified by Separate Agreement.

440.3117 Obligation modified, supplemented, or nullified by separate agreement.
Sec. 3117.
Subject to applicable law regarding exclusion of proof of contemporaneous or previous agreements, the obligation of a party to an instrument to pay the instrument may be modified, supplemented, or nullified by a separate agreement of the obligor and a person entitled to enforce the instrument, if the instrument is issued or the obligation is incurred in reliance on the agreement or as part of the same transaction giving rise to the agreement. To the extent an obligation is modified, supplemented, or nullified by an agreement under this section, the agreement is a defense to the obligation.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3118 - Action to Enforce Obligation; Commencement; Time Period; Other Actions.

440.3118 Action to enforce obligation; commencement; time period; other actions.
Sec. 3118.
(1) Except as provided in subsection (5), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within 6 years after the due date or dates stated in the note or, if a due date is accelerated, within 6 years after the accelerated due date.
(2) Except as provided in subsection (4) or (5), if demand for payment is made to the maker of a note payable on demand, an action to enforce the obligation of a party to pay the note must be commenced within 6 years after the demand. If no demand for payment is made to the maker, an action to enforce the note is barred if neither principal nor interest on the note has been paid for a continuous period of 10 years.
(3) Except as provided in subsection (4), an action to enforce the obligation of a party to an unaccepted draft to pay the draft must be commenced within 3 years after dishonor of the draft or 10 years after the date of the draft, whichever period expires first.
(4) An action to enforce the obligation of the acceptor of a certified check or the issuer of a teller's check, cashier's check, or traveler's check must be commenced within 3 years after demand for payment is made to the acceptor or issuer.
(5) An action to enforce the obligation of a party to a certificate of deposit to pay the instrument must be commenced within 6 years after demand for payment is made to the maker, but if the instrument states a due date and the maker is not required to pay before that date, the 6-year period begins when a demand for payment is in effect and the due date has passed.
(6) An action to enforce the obligation of a party to pay an accepted draft, other than a certified check, must be commenced (i) within 6 years after the due date or dates stated in the draft or acceptance if the obligation of the acceptor is payable at a definite time, or (ii) within 6 years after the date of the acceptance if the obligation of the acceptor is payable on demand.
(7) Unless governed by other law regarding claims for indemnity or contribution, an action (i) for conversion of an instrument, for money had and received, or like action based on conversion, (ii) for breach of warranty, or (iii) to enforce an obligation, duty, or right arising under this article and not governed by this section must be commenced within 3 years after the cause of action accrues.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3119 - Notice of Litigation to Answerable Third Party.

440.3119 Notice of litigation to answerable third party.
Sec. 3119.
In an action for breach of an obligation for which a third person is answerable over pursuant to this article or article 4, the defendant may give the third person notice of the litigation in a record, and the person notified may then give similar notice to any other person who is answerable over. If the notice states (i) that the person notified may come in and defend and (ii) that failure to do so will bind the person notified in an action later brought by the person giving the notice as to any determination of fact common to the 2 litigations, the person notified is so bound unless after seasonable receipt of the notice the person notified does come in and defend.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993 ;-- Am. 2014, Act 101, Imd. Eff. Apr. 10, 2014
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-1 - Part 1 General Provisions and Definitions (440.3101...440.3122) › Section 440.3120-440.3122 - Repealed. 1993, Act 130, Eff. Sept. 30, 1993.

440.3120-440.3122 Repealed. 1993, Act 130, Eff. Sept. 30, 1993.
Compiler's Notes:
The repealed sections pertained to instruments payable through or at a bank, accrual of cause of action, and interest.
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-2 - Part 2 Negotiation, Transfer, and Endorsement (440.3201...440.3208) › Section 440.3201 - Negotiation; Definition; Transfer of Possession.

440.3201 Negotiation; definition; transfer of possession.
Sec. 3201.
(1) "Negotiation" means a transfer of possession, whether voluntary or involuntary, of an instrument by a person other than the issuer to a person who thereby becomes its holder.
(2) Except for negotiation by a remitter, if an instrument is payable to an identified person, negotiation requires transfer of possession of the instrument and its endorsement by the holder. If an instrument is payable to bearer, it may be negotiated by transfer of possession alone.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-2 - Part 2 Negotiation, Transfer, and Endorsement (440.3201...440.3208) › Section 440.3202 - Negotiation; Effective Although Subject to Rescission or Other Remedies.

440.3202 Negotiation; effective although subject to rescission or other remedies.
Sec. 3202.
(1) Negotiation is effective even if obtained (i) from an infant, a corporation exceeding its powers, or a person without capacity, (ii) by fraud, duress, or mistake, or (iii) in breach of duty or as part of an illegal transaction.
(2) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good faith and without knowledge of facts that are a basis for rescission or other remedy.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-2 - Part 2 Negotiation, Transfer, and Endorsement (440.3201...440.3208) › Section 440.3203 - Transfer of Instrument; Delivery; Rights of Transferee; Effect of Transfer of Less Than Entire Instrument.

440.3203 Transfer of instrument; delivery; rights of transferee; effect of transfer of less than entire instrument.
Sec. 3203.
(1) An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to enforce the instrument.
(2) Transfer of an instrument, whether or not the transfer is a negotiation, vests in the transferee any right of the transferor to enforce the instrument, including any right as a holder in due course, but the transferee cannot acquire rights of a holder in due course by a transfer, directly or indirectly, from a holder in due course if the transferee engaged in fraud or illegality affecting the instrument.
(3) Unless otherwise agreed, if an instrument is transferred for value and the transferee does not become a holder because of lack of endorsement by the transferor, the transferee has a specifically enforceable right to the unqualified endorsement of the transferor, but negotiation of the instrument does not occur until the endorsement is made.
(4) If a transferor purports to transfer less than the entire instrument, negotiation of the instrument does not occur. The transferee obtains no rights under this article and has only the rights of a partial assignee.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-2 - Part 2 Negotiation, Transfer, and Endorsement (440.3201...440.3208) › Section 440.3204 - “Endorsement” and “Endorser” Defined; Transfer of Security Interest Effective as Unqualified Endorsement; Instrument Payable to Name Other Than Holder.

440.3204 “Endorsement” and “endorser” defined; transfer of security interest effective as unqualified endorsement; instrument payable to name other than holder.
Sec. 3204.
(1) "Endorsement" means a signature, other than that of a signer as maker, drawer, or acceptor, that alone or accompanied by other words is made on an instrument for the purpose of (i) negotiating the instrument, (ii) restricting payment of the instrument, or (iii) incurring endorser's liability on the instrument, but regardless of the intent of the signer, a signature and its accompanying words is an endorsement unless the accompanying words, terms of the instrument, place of the signature, or other circumstances unambiguously indicate that the signature was made for a purpose other than endorsement. For the purpose of determining whether a signature is made on an instrument, a paper affixed to the instrument is a part of the instrument.
(2) "Endorser" means a person who makes an endorsement.
(3) For the purpose of determining whether the transferee of an instrument is a holder, an endorsement that transfers a security interest in the instrument is effective as an unqualified endorsement of the instrument.
(4) If an instrument is payable to a holder under a name that is not the name of the holder, endorsement may be made by the holder in the name stated in the instrument or in the holder's name or both, but signature in both names may be required by a person paying or taking the instrument for value or collection.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-2 - Part 2 Negotiation, Transfer, and Endorsement (440.3201...440.3208) › Section 440.3205 - Special Endorsement; Blank Endorsement; Conversion; “Anomalous Endorsement” Defined.

440.3205 Special endorsement; blank endorsement; conversion; “anomalous endorsement” defined.
Sec. 3205.
(1) 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 3110 apply to special endorsements.
(2) If an endorsement is made by the holder of an instrument and it 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.
(3) 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.
(4) "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.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-2 - Part 2 Negotiation, Transfer, and Endorsement (440.3201...440.3208) › Section 440.3207 - Instrument; Reacquisition.

440.3207 Instrument; reacquisition.
Sec. 3207.
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 canceled is discharged, and the discharge is effective against any subsequent holder.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-2 - Part 2 Negotiation, Transfer, and Endorsement (440.3201...440.3208) › Section 440.3208 - Repealed. 1993, Act 130, Eff. Sept. 30, 1993.

440.3208 Repealed. 1993, Act 130, Eff. Sept. 30, 1993.
Compiler's Notes:
The repealed section pertained to reacquisition of instruments.
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-3 - Part 3 Enforcement of Instruments (440.3301...440.3312) › Section 440.3301 - Instrument; Person Entitled to Enforce.

440.3301 Instrument; person entitled to enforce.
Sec. 3301.
"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 3309 or 3418(4). 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.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-3 - Part 3 Enforcement of Instruments (440.3301...440.3312) › Section 440.3303 - Instrument Issued or Transferred for Value; Consideration.

440.3303 Instrument issued or transferred for value; consideration.
Sec. 3303.
(1) An instrument is issued or transferred for value if any of the following apply:
(a) The instrument is issued or transferred for a promise of performance, to the extent the promise has been performed.
(b) The transferee acquires a security interest or other lien in the instrument other than a lien obtained by judicial proceeding.
(c) 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.
(d) The instrument is issued or transferred in exchange for a negotiable instrument.
(e) 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.
(2) "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 (1), the instrument is also issued for consideration.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-3 - Part 3 Enforcement of Instruments (440.3301...440.3312) › Section 440.3304 - Instruments Payable on Demand or Payable at Definite Time as Overdue; Conditions.

440.3304 Instruments payable on demand or payable at definite time as overdue; conditions.
Sec. 3304.
(1) An instrument payable on demand becomes overdue at the earliest of the following times:
(a) On the day after the day demand for payment is duly made.
(b) If the instrument is a check, 90 days after its date.
(c) 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.
(2) With respect to an instrument payable at a definite time, the following rules apply:
(a) 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.
(b) 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.
(c) If a due date with respect to principal has been accelerated, the instrument becomes overdue on the day after the accelerated due date.
(3) 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.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-3 - Part 3 Enforcement of Instruments (440.3301...440.3312) › Section 440.3306 - Instrument; Person Subject to Claim of Property or Possessory Right.

440.3306 Instrument; person subject to claim of property or possessory right.
Sec. 3306.
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.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-3 - Part 3 Enforcement of Instruments (440.3301...440.3312) › Section 440.3307 - Fiduciary Duty; Breach.

440.3307 Fiduciary duty; breach.
Sec. 3307.
(1) As used in this section:
(a) "Fiduciary" means an agent, trustee, partner, corporate officer or director, or other representative owing a fiduciary duty with respect to an instrument.
(b) "Represented person" means the principal, beneficiary, partnership, corporation, or other person to whom the duty stated in subdivision (a) is owned.
(2) 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:
(a) Notice of breach of fiduciary duty by the fiduciary is notice of the claim of the represented person.
(b) 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.
(c) 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.
(d) 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.
History:
1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-3 - Part 3 Enforcement of Instruments (440.3301...440.3312) › Section 440.3308 - Establishing Validity of Signature; Burden; Right to Payment Subject to Defense or Claim in Recoupment; Holder in Due Course Not Subject to Defense or Claim.

440.3308 Establishing validity of signature; burden; right to payment subject to defense or claim in recoupment; holder in due course not subject to defense or claim.
Sec. 3308.
(1) 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 3402(1).
(2) If the validity of signatures is admitted or proved and there is compliance with subsection (1), a plaintiff producing the instrument is entitled to payment if the plaintiff proves entitlement to enforce the instrument under section 3301, 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.
History:
Add. 1993, Act 130, Eff. Sept. 30, 1993
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-3 - Part 3 Enforcement of Instruments (440.3301...440.3312) › Section 440.3309 - Enforcement of Instrument in Which Loss of Possession Occurred.

440.3309 Enforcement of instrument in which loss of possession occurred.
Sec. 3309.
(1) A person not in possession of an instrument is entitled to enforce the instrument if all of the following are met:
(a) The person meets either of the following:
(i) Was entitled to enforce the instrument when loss of possession occurred.
(ii) Has directly or indirectly acquired ownership of the instrument from a person that was entitled to enforce the instrument when loss of possession occurred.
(b) The loss of possession was not the result of a transfer by the person or a lawful seizure.
(c) 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.
(2) A person seeking enforcement of an instrument under subsection (1) must prove the terms of the instrument and the person's right to enforce the instrument. If that proof is made, section 3308 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.
History:
Add. 1993, Act 130, Eff. Sept. 30, 1993 ;-- Am. 2014, Act 101, Imd. Eff. Apr. 10, 2014
2023 Michigan Compiled Laws › Chapter 440 - Uniform Commercial Code › Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102) › Article 3 - Negotiable Instruments (440.3101...440.3805) › 174-1962-3-3 - Part 3 Enforcement of Instruments (440.3301...440.3312) › Section 440.3310 - Certified Check, Cashier's Check, or Teller's Check; Discharge; Note or Uncertified Check; Suspension of Obligation; Other Instruments.

440.3310 Certified check, cashier's check, or teller's check; discharge; note or uncertified check; suspension of obligation; other instruments.
Sec. 3310.
(1) 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.
(2) Unless otherwise agreed and except as provided in subsection (1), 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:
(a) 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.
(b) 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.
(c) Except as provided in subdivision (d), 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.
(d) 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.
(3) If an instrument other than one described in subsection (1) or (2) is taken for an obligation, the effect is (i) that stated in subsection (1) if the instrument is one on which a bank is liable as maker or acceptor, or (ii) that stated in subsection (2) in any other case.
History:
Add. 1993, Act 130, Eff. Sept. 30, 1993