reglab/statecodes huggingface dataset:
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 1 - Short Title, Form and Interpretation › 3-117 - Instruments Payable With Words of Description.

Section 3--117. Instruments Payable With Words of Description.
An  instrument  made  payable  to  a named person with the addition of
words describing him
(a) as agent or officer of  a  specified  person  is  payable  to  his
principal but the agent or officer may act as if he were the holder;
(b)  as  any  other  fiduciary  for  a  specified person or purpose is
payable to the payee and may be negotiated, discharged  or  enforced  by
him;
(c)  in  any  other manner is payable to the payee unconditionally and
the additional words are without effect on subsequent parties.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 1 - Short Title, Form and Interpretation › 3-118 - Ambiguous Terms and Rules of Construction.

Section 3--118. Ambiguous Terms and Rules of Construction.
The following rules apply to every instrument:
(a)  Where  there is doubt whether the instrument is a draft or a note
the holder may treat it as either.  A  draft  drawn  on  the  drawer  is
effective as a note.
(b)  Handwritten  terms  control  typewritten  and  printed terms, and
typewritten control printed.
(c) Words control figures except  that  if  the  words  are  ambiguous
figures control.
(d) Unless otherwise specified a provision for interest means interest
at  the  judgment  rate  at  the  place  of payment from the date of the
instrument, or if it is undated from the date of issue.
(e) Unless the instrument otherwise specifies two or more persons  who
sign  as maker, acceptor or drawer or indorser and as a part of the same
transaction are jointly and severally liable even though the  instrument
contains such words as "I promise to pay."
(f)  Unless  otherwise  specified  consent  to  extension authorizes a
single extension for not longer than the original period. A  consent  to
extension,  expressed in the instrument, is binding on secondary parties
and accommodation makers. A holder may not exercise his option to extend
an instrument over the objection of a maker or acceptor or  other  party
who  in  accordance  with  Section  3--604 tenders full payment when the
instrument is due.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 1 - Short Title, Form and Interpretation › 3-119 - Other Writings Affecting Instrument.

Section 3--119. Other Writings Affecting Instrument.
(1) As between the obligor and his immediate obligee or any transferee
the  terms  of  an  instrument  may be modified or affected by any other
written agreement executed as a part of  the  same  transaction,  except
that  a  holder  in  due course is not affected by any limitation of his
rights arising out of the separate written agreement if he had no notice
of the limitation when he took the instrument.
(2) A separate agreement does  not  affect  the  negotiability  of  an
instrument.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 1 - Short Title, Form and Interpretation › 3-120 - Instruments "Payable Through" Bank.

Section 3--120. Instruments "Payable Through" Bank.
An  instrument which states that it is "payable through" a bank or the
  like designates that bank as a collecting bank to make  presentment  but
  does not of itself authorize the bank to pay the instrument.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 1 - Short Title, Form and Interpretation › 3-121 - Instruments Payable at Bank.

Section 3--121. Instruments Payable at Bank.
A  note or acceptance which states that it is payable at a bank is the
  equivalent of a draft drawn on the bank payable when it falls due out of
  any funds of the maker or  acceptor  in  current  account  or  otherwise
  available for such payment.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 1 - Short Title, Form and Interpretation › 3-122 - Accrual of Cause of Action.

Section 3--122. Accrual of Cause of Action.
(1) A cause of action against a maker or an acceptor accrues
(a) in the case of a time instrument on the day after maturity;
(b) in  the  case  of a demand instrument upon its date or, if no
date is stated, on the date of issue.
(2) A cause of  action  against  the  obligor  of  a  demand  or  time
certificate  of  deposit  accrues  upon  demand,  but  demand  on a time
certificate may not be made until on or after the date of maturity.
(3) A cause of action against a drawer of a draft or  an  indorser  of
any instrument accrues upon demand following dishonor of the instrument.
Notice of dishonor is a demand.
(4) Unless an instrument provides otherwise, interest runs at the rate
provided by law for a judgment
(a) in  the case of a maker, acceptor or other primary obligor of
a demand instrument, from the date of demand;
(b) in all other cases from the date of accrual of the  cause  of
action.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 2 - Transfer and Negotiation › 3-201 - Transfer: Right to Indorsement.

Section 3--201. Transfer: Right to Indorsement.
(1)  Transfer  of an instrument vests in the transferee such rights as
the transferor has therein, except that a  transferee  who  has  himself
been  a party to any fraud or illegality affecting the instrument or who
as a prior holder had notice of a defense or  claim  against  it  cannot
improve his position by taking from a later holder in due course.
(2)  A  transfer  of  a  security  interest in an instrument vests the
foregoing rights in  the  transferee  to  the  extent  of  the  interest
transferred.
(3)  Unless  otherwise  agreed any transfer for value of an instrument
not then  payable  to  bearer  gives  the  transferee  the  specifically
enforceable right to have the unqualified indorsement of the transferor.
Negotiation  takes  effect  only  when the indorsement is made and until
that time there is no presumption that the transferee is the owner.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 2 - Transfer and Negotiation › 3-202 - Negotiation.

Section 3--202. Negotiation.
(1) Negotiation is the transfer of an instrument in such form that the
transferee becomes a holder. If the instrument is payable to order it is
negotiated  by  delivery  with  any necessary indorsement; if payable to
bearer it is negotiated by delivery.
(2) An indorsement must be written by or on behalf of the  holder  and
on the instrument or on a paper so firmly affixed thereto as to become a
part thereof.
(3)  An  indorsement is effective for negotiation only when it conveys
the entire instrument or any unpaid residue. If it  purports  to  be  of
less it operates only as a partial assignment.
(4)  Words  of  assignment, condition, waiver, guaranty, limitation or
disclaimer of liability and the like accompanying an indorsement do  not
affect its character as an indorsement.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 2 - Transfer and Negotiation › 3-203 - Wrong or Misspelled Name.

Section 3--203. Wrong or Misspelled Name.
Where  an  instrument  is  made payable to a person under a misspelled
  name or one other than his own he may indorse in that name or his own or
  both; but signature in both names may be required by a person paying  or
  giving value for the instrument.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 2 - Transfer and Negotiation › 3-204 - Special Indorsement; Blank Indorsement.

Section 3--204. Special Indorsement; Blank Indorsement.
(1)  A  special  indorsement  specifies the person to whom or to whose
order it makes the instrument payable. Any instrument specially indorsed
becomes payable to the order of the special indorsee and may be  further
negotiated only by his indorsement.
(2)  An  indorsement in blank specifies no particular indorsee and may
consist of a mere signature. An instrument payable to order and indorsed
in blank becomes payable to bearer and may  be  negotiated  by  delivery
alone until specially indorsed.
(3)  The  holder  may  convert  a  blank  indorsement  into  a special
indorsement by writing over the signature of the indorser in  blank  any
contract consistent with the character of the indorsement.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 2 - Transfer and Negotiation › 3-205 - Restrictive Indorsements.

Section 3--205. Restrictive Indorsements.
An indorsement is restrictive which either
(a) is conditional; or
(b) purports to prohibit further transfer of the instrument; or
(c)  includes  the  words  "for  collection",  "for deposit", "pay any
bank", or like terms signifying a purpose of deposit or collection; or
(d) otherwise states that it is for the benefit or use of the indorser
or of another person.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 2 - Transfer and Negotiation › 3-206 - Effect of Restrictive Indorsement.

Section 3--206. Effect of Restrictive Indorsement.
(1)   No   restrictive   indorsement   prevents  further  transfer  or
negotiation of the instrument.
(2) An intermediary bank, or a payor bank which is not the  depositary
bank,  is  neither  given notice nor otherwise affected by a restrictive
indorsement of any person except the bank's immediate transferor or  the
person presenting for payment.
(3)   Except  for  an  intermediary  bank,  any  transferee  under  an
indorsement which is conditional or includes the words "for collection",
"for deposit", "pay any bank", or like terms (subparagraphs (a) and  (c)
of  Section  3--205)  must pay or apply any value given by him for or on
the security of the instrument consistently with the indorsement and  to
the  extent  that  he does so he becomes a holder for value. In addition
such transferee is a holder in due course if he otherwise complies  with
the  requirements  of Section 3--302 on what constitutes a holder in due
course.
(4) The first taker under  an  indorsement  for  the  benefit  of  the
indorser or another person (subparagraph (d) of Section 3--205) must pay
or apply any value given by him for or on the security of the instrument
consistently  with  the indorsement and to the extent that he does so he
becomes a holder for value. In addition such taker is a  holder  in  due
course  if he otherwise complies with the requirements of Section 3--302
on what constitutes a holder in due course. A later holder for value  is
neither   given  notice  nor  otherwise  affected  by  such  restrictive
indorsement unless he has knowledge that a fiduciary or other person has
negotiated the instrument in any transaction  for  his  own  benefit  or
otherwise in breach of duty (subsection (2) of Section 3--304).
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 2 - Transfer and Negotiation › 3-207 - Negotiation Effective Although It May Be Rescinded.

Section 3--207. Negotiation Effective Although It May Be Rescinded.
(1)  Negotiation  is effective to transfer the instrument although the
negotiation is
(a) made by an infant, a corporation exceeding its powers, or any
other person without capacity; or
(b) obtained by fraud, duress or mistake of any kind; or
(c) part of an illegal transaction; or
(d) made in breach of duty.
(2)  Except  as  against  a  subsequent  holder  in  due  course  such
negotiation  is  in  an  appropriate  case  subject  to  rescission, the
declaration of a constructive trust or any  other  remedy  permitted  by
law.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 2 - Transfer and Negotiation › 3-208 - Reacquisition.

Section 3--208. Reacquisition.
Where  an  instrument is returned to or reacquired by a prior party he
  may cancel any indorsement which is  not  necessary  to  his  title  and
  reissue  or  further negotiate the instrument, but any intervening party
  is discharged as against the reacquiring party  and  subsequent  holders
  not  in  due  course  and  if  his  indorsement  has  been  cancelled is
  discharged as against subsequent holders in due course as well.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 3 - Rights of a Holder › 3-301 - Rights of a Holder.

Section 3--301. Rights of a Holder.
The  holder  of  an  instrument  whether  or  not  he is the owner may
  transfer or negotiate it and, except as otherwise  provided  in  Section
  3--603  on  payment  or satisfaction, discharge it or enforce payment in
  his own name.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 3 - Rights of a Holder › 3-302 - Holder in Due Course.

Section 3--302. Holder in Due Course.
(1) A holder in due course is a holder who takes the instrument
(a) for value; and
(b) in good faith; and
(c) without  notice  that it is overdue or has been dishonored or
of any defense against or claim to it  on  the  part  of  any
person.
(2) A payee may be a holder in due course.
(3) A holder does not become a holder in due course of an instrument:
(a) by  purchase  of  it  at  judicial sale or by taking it under
legal process; or
(b) by acquiring it in taking over an estate; or
(c) by purchasing it as part of a bulk transaction not in regular
course of business of the transferor.
(4) A purchaser of a limited interest can be a holder  in  due  course
only to the extent of the interest purchased.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 3 - Rights of a Holder › 3-303 - Taking for Value.

Section 3--303. Taking for Value.
A holder takes the instrument for value
(a)  to the extent that the agreed consideration has been performed or
that he acquires a security interest in or  a  lien  on  the  instrument
otherwise than by legal process; or
(b)  when  he takes the instrument in payment of or as security for an
antecedent claim against any person whether or not the claim is due; or
(c) when  he  gives  a  negotiable  instrument  for  it  or  makes  an
irrevocable commitment to a third person.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 3 - Rights of a Holder › 3-304 - Notice to Purchaser.

Section 3--304. Notice to Purchaser.
(1) The purchaser has notice of a claim or defense if
(a) the  instrument is so incomplete, bears such visible evidence
of forgery or alteration, or is otherwise so irregular as  to
call  into  question  its  validity, terms or ownership or to
create an ambiguity as to the party to pay; or
(b) the purchaser has notice that the obligation of any party  is
voidable  in  whole or in part, or that all parties have been
discharged.
(2) The purchaser has notice of a claim against the instrument when he
has knowledge that a fiduciary has negotiated the instrument in  payment
of  or  as  security  for his own debt or in any transaction for his own
benefit or otherwise in breach of duty.
(3) The purchaser has notice that an instrument is overdue if  he  has
reason to know
(a) that  any  part  of  the  principal amount is overdue or that
there is an uncured default in payment of another  instrument
of the same series; or
(b) that acceleration of the instrument has been made; or
(c) that  he  is taking a demand instrument after demand has been
made or more than a  reasonable  length  of  time  after  its
issue. A reasonable time for a check drawn and payable within
the  states  and  territories  of  the  United States and the
District of Columbia is presumed to be thirty days.
(4) Knowledge of the following facts  does  not  of  itself  give  the
purchaser notice of a defense or claim
(a) that the instrument is antedated or postdated;
(b) that  it  was issued or negotiated in return for an executory
promise or accompanied by a separate  agreement,  unless  the
purchaser  has notice that a defense or claim has arisen from
the terms thereof;
(c) that any party has signed for accommodation;
(d) that an incomplete instrument has been completed, unless  the
purchaser has notice of any improper completion;
(e) that  any  person  negotiating  the  instrument  is  or was a
fiduciary;
(f) that there has been default in payment  of  interest  on  the
instrument  or in payment of any other instrument, except one
of the same series.
(5) The  filing  or  recording  of  a  document  does  not  of  itself
constitute  notice within the provisions of this Article to a person who
would otherwise be a holder in due course.
(6) To be effective notice must be received at such time and  in  such
manner as to give a reasonable opportunity to act on it.
(7)  In  any  event,  to  constitute notice of a claim or defense, the
purchaser must have knowledge of the claim or defense  or  knowledge  of
such  facts  that  his  action  in  taking the instrument amounts to bad
faith.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 3 - Rights of a Holder › 3-305 - Rights of a Holder in Due Course.

Section 3--305. Rights of a Holder in Due Course.
To  the  extent  that  a holder is a holder in due course he takes the
instrument free from
(1) all claims to it on the part of any person; and
(2) all defenses of any party to the instrument with whom  the  holder
has not dealt except
(a) infancy,  to  the  extent  that  it  is a defense to a simple
contract; and
(b) such other  incapacity,  or  duress,  or  illegality  of  the
transaction,  as  renders  the  obligation  of  the  party  a
nullity; and
(c) such misrepresentation as has induced the party to  sign  the
instrument  with neither knowledge nor reasonable opportunity
to obtain knowledge of its character or its essential  terms;
and
(d) discharge in insolvency proceedings; and
(e) any  other  discharge  of which the holder has notice when he
takes the instrument.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 3 - Rights of a Holder › 3-306 - Rights of One Not Holder in Due Course.

Section 3--306. Rights of One Not Holder in Due Course.
Unless  he  has  the rights of a holder in due course any person takes
the instrument subject to
(a) all valid claims to it on the part of any person; and
(b) all defenses of any party which would be available in an action on
a simple contract; and
(c) the defenses of want or failure of consideration,  non-performance
of  any  condition  precedent,  non-delivery,  or delivery for a special
purpose (Section 3--408); and
(d) the defense that  he  or  a  person  through  whom  he  holds  the
instrument acquired it by theft, or that payment or satisfaction to such
holder   would   be   inconsistent  with  the  terms  of  a  restrictive
indorsement. The claim of any third person  to  the  instrument  is  not
otherwise  available as a defense to any party liable thereon unless the
third person himself defends the action for such party.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 3 - Rights of a Holder › 3-307 - Burden of Establishing Signatures, Defenses and Due Course.

Section 3--307. Burden  of  Establishing  Signatures,  Defenses  and Due
Course.
(1) Unless specifically denied in the pleadings each signature  on  an
instrument  is admitted. When the effectiveness of a signature is put in
issue
(a) the burden of establishing it is on the party claiming  under
the signature; but
(b) the  signature is presumed to be genuine or authorized except
where the action is to enforce the obligation of a  purported
signer  who  has  died  or become incompetent before proof is
required.
(2) When signatures are admitted or  established,  production  of  the
instrument  entitles  a  holder  to  recover  on it unless the defendant
establishes a defense.
(3) After it is shown that a defense  exists  a  person  claiming  the
rights  of a holder in due course has the burden of establishing that he
or some person under whom he claims is in all respects a holder  in  due
course.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-401 - Signature.

Section 3--401. Signature.
(1)  No person is liable on an instrument unless his signature appears
thereon.
(2) A signature is made by use of any name,  including  any  trade  or
assumed name, upon an instrument, or by any word or mark used in lieu of
a written signature.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-403 - Signature by Authorized Representative.

Section 3--403. Signature by Authorized Representative.
(1)  A  signature may be made by an agent or other representative, and
his authority to make it  may  be  established  as  in  other  cases  of
representation.  No  particular  form  of  appointment  is  necessary to
establish such authority.
(2) An  authorized  representative  who  signs  his  own  name  to  an
instrument
(a) is  personally  obligated if the instrument neither names the
person represented nor shows that the  representative  signed
in a representative capacity;
(b) except   as   otherwise  established  between  the  immediate
parties, is personally obligated if the instrument names  the
person  represented but does not show that the representative
signed in a representative capacity,  or  if  the  instrument
does  not  name the person represented but does show that the
representative signed in a representative capacity.
(3) Except as  otherwise  established  the  name  of  an  organization
preceded  or followed by the name and office of an authorized individual
is a signature made in a representative capacity.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-404 - Unauthorized Signatures.

Section 3--404. Unauthorized Signatures.
(1)  Any  unauthorized  signature is wholly inoperative as that of the
person whose name is signed unless he ratifies it or is  precluded  from
denying  it; but it operates as the signature of the unauthorized signer
in favor of any person who in good faith pays the instrument or takes it
for value.
(2) Any unauthorized signature may be ratified  for  all  purposes  of
this  Article. Such ratification does not of itself affect any rights of
the person ratifying against the actual signer.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-405 - Impostors; Signature in Name of Payee.

Section 3--405. Impostors; Signature in Name of Payee.
(1)  An  indorsement  by  any  person  in the name of a named payee is
effective if
(a) an impostor by use of the mails or otherwise has induced  the
maker  or  drawer  to  issue  the  instrument  to  him or his
confederate in the name of the payee; or
(b) a person signing as or on behalf of a maker or drawer intends
the payee to have no interest in the instrument; or
(c) an agent or employee of the maker or drawer has supplied  him
with  the  name  of the payee intending the latter to have no
such interest.
(2) Nothing in  this  section  shall  affect  the  criminal  or  civil
liability of the person so indorsing.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-406 - Negligence Contributing to Alteration or Unauthorized Signature.

Section 3--406. Negligence  Contributing  to  Alteration or Unauthorized
Signature.
Any person who  by  his  negligence  substantially  contributes  to  a
  material   alteration   of  the  instrument  or  to  the  making  of  an
  unauthorized signature is precluded from  asserting  the  alteration  or
  lack  of authority against a holder in due course or against a drawee or
  other payor who pays the instrument in good faith and in accordance with
  the reasonable commercial standards of the drawee's or payor's business.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-407 - Alteration.

Section 3--407. Alteration.
(1)  Any  alteration  of  an  instrument is material which changes the
contract of any party thereto in any respect, including any such  change
in
(a) the number or relations of the parties; or
(b) an  incomplete instrument, by completing it otherwise than as
authorized; or
(c) the writing as signed, by adding to it  or  by  removing  any
part of it.
(2) As against any person other than a subsequent holder in due course
(a) alteration  by  the  holder  which  is  both  fraudulent  and
material discharges  any  party  whose  contract  is  thereby
changed  unless  that  party  assents  or  is  precluded from
asserting the defense;
(b) no other alteration discharges any party and  the  instrument
may  be  enforced  according  to its original tenor, or as to
incomplete instruments according to the authority given.
(3) A subsequent holder in due course may in  all  cases  enforce  the
instrument  according  to  its  original  tenor,  and when an incomplete
instrument has been completed, he may enforce it as completed.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-408 - Consideration.

Section 3--408. Consideration.
Want  or  failure  of consideration is a defense as against any person
  not having the rights of a holder in due course (Section 3--305), except
  that no consideration is  necessary  for  an  instrument  or  obligation
  thereon  given in payment of or as security for an antecedent obligation
  of any kind. Nothing in this section shall  be  taken  to  displace  any
  statute   outside   this  Act  under  which  a  promise  is  enforceable
  notwithstanding lack or failure of  consideration.  Partial  failure  of
  consideration is a defense pro tanto whether or not the failure is in an
  ascertained or liquidated amount.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-409 - Draft Not an Assignment.

Section 3--409. Draft Not an Assignment.
(1) A check or other draft does not of itself operate as an assignment
of  any  funds in the hands of the drawee available for its payment, and
the drawee is not liable on the instrument until he accepts it.
(2) Nothing in this section shall affect any  liability  in  contract,
tort  or otherwise arising from any letter of credit or other obligation
or representation which is not an acceptance.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-410 - Definition and Operation of Acceptance.

Section 3--410. Definition and Operation of Acceptance.
(1) Acceptance is the drawee's signed engagement to honor the draft as
presented.  It  must  be  written  on  the draft, and may consist of his
signature alone. It becomes operative  when  completed  by  delivery  or
notification.
(2)  A  draft  may  be accepted although it has not been signed by the
drawer or is otherwise incomplete or is overdue or has been dishonored.
(3) Where the draft is payable at a fixed period after sight  and  the
acceptor  fails  to  date  his  acceptance the holder may complete it by
supplying a date in good faith.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-411 - Certification of a Check.

Section 3--411. Certification of a Check.
(1)  Certification  of  a check is acceptance. Where a holder procures
certification the drawer and all prior indorsers are discharged.
(2) Unless otherwise agreed a bank has  no  obligation  to  certify  a
check.
(3)  A bank may certify a check before returning it for lack of proper
indorsement. If it does so the drawer is discharged.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-412 - Acceptance Varying Draft.

Section 3--412. Acceptance Varying Draft.
(1)  Where  the drawee's proffered acceptance in any manner varies the
draft as presented the holder may refuse the acceptance  and  treat  the
draft  as  dishonored  in  which case the drawee is entitled to have his
acceptance cancelled.
(2) The terms of the draft are not varied by an acceptance to  pay  at
any particular bank or place in the United States, unless the acceptance
states that the draft is to be paid only at such bank or place.
(3) Where the holder assents to an acceptance varying the terms of the
draft  each  drawer  and  indorser  who does not affirmatively assent is
discharged.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-413 - Contract of Maker, Drawer and Acceptor.

Section 3--413. Contract of Maker, Drawer and Acceptor.
(1)  The  maker  or  acceptor  engages that he will pay the instrument
according to its tenor at the time of his  engagement  or  as  completed
pursuant to Section 3--115 on incomplete instruments.
(2)  The  drawer  engages  that  upon  dishonor  of  the draft and any
necessary notice of dishonor or protest he will pay the  amount  of  the
draft  to  the holder or to any indorser who takes it up. The drawer may
disclaim this liability by drawing without recourse.
(3) By making, drawing or accepting the party admits  as  against  all
subsequent  parties  including the drawee the existence of the payee and
his then capacity to indorse.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-414 - Contract of Indorser; Order of Liability.

Section 3--414. Contract of Indorser; Order of Liability.
(1)  Unless  the  indorsement otherwise specifies (as by such words as
"without recourse") every indorser engages that upon  dishonor  and  any
necessary  notice  of  dishonor  and  protest he will pay the instrument
according to its tenor at the time of his indorsement to the  holder  or
to any subsequent indorser who takes it up, even though the indorser who
takes it up was not obligated to do so.
(2) Unless they otherwise agree indorsers are liable to one another in
the  order  in  which they indorse, which is presumed to be the order in
which their signatures appear on the instrument.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-415 - Contract of Accommodation Party.

Section 3--415. Contract of Accommodation Party.
(1)  An  accommodation  party  is  one who signs the instrument in any
capacity for the purpose of lending his name to another party to it.
(2) When the instrument has been taken for value before it is due  the
accommodation  party  is  liable  in the capacity in which he has signed
even though the taker knows of the accommodation.
(3) As against a holder in  due  course  and  without  notice  of  the
accommodation  oral proof of the accommodation is not admissible to give
the accommodation party the  benefit  of  discharges  dependent  on  his
character  as  such.  In  other cases the accommodation character may be
shown by oral proof.
(4) An indorsement which shows that it is not in the chain of title is
notice of its accommodation character.
(5) An accommodation party is not liable to  the  party  accommodated,
and  if he pays the instrument has a right of recourse on the instrument
against such party.
(6) An accommodation party warrants to any subsequent  holder  who  is
not  the  party  accommodated and who takes the instrument in good faith
that
(a) all signatures are genuine or authorized; and
(b) the instrument has not been materially altered; and
(c) all prior parties had capacity to contract; and
(d) he has no knowledge of any insolvency  proceeding  instituted
with  respect  to  the  maker or acceptor or the drawer of an
unaccepted instrument.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-416 - Contract of Guarantor.

Section 3--416. Contract of Guarantor.
(1) "Payment guaranteed" or equivalent words added to a signature mean
that  the  signer engages that if the instrument is not paid when due he
will pay it according to its tenor without resort by the holder  to  any
other party.
(2)  "Collection  guaranteed" or equivalent words added to a signature
mean that the signer engages that if the instrument is not paid when due
he will pay it according to its tenor, but only  after  the  holder  has
reduced  his  claim  against  the  maker  or  acceptor  to  judgment and
execution has been returned unsatisfied, or after the maker or  acceptor
has  become  insolvent or it is otherwise apparent that it is useless to
proceed against him.
(3) Words  of  guaranty  which  do  not  otherwise  specify  guarantee
payment.
(4)  No  words  of  guaranty added to the signature of a sole maker or
acceptor affect his liability on the instrument. Such words added to the
signature of one of two or more makers or acceptors create a presumption
that the signature is for the accommodation of the others.
(5) When words of guaranty are used presentment,  notice  of  dishonor
and protest are not necessary to charge the user.
(6)   Any   guaranty   written   on   the   instrument  is  enforcible
notwithstanding any statute of frauds.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-417 - Warranties on Presentment and Transfer.

Section 3--417. Warranties on Presentment and Transfer.
(1)  Any  person  who  obtains  payment  or  acceptance  and any prior
transferor warrants to a person who in good faith pays or accepts that
(a) he has a good title to the instrument  or  is  authorized  to
obtain  payment or acceptance on behalf of one who has a good
title; and
(b) he has no knowledge that the signature of the maker or drawer
is unauthorized, except that this warranty is not given by  a
holder in due course acting in good faith
(i) to a maker with respect to the maker's own signature; or
(ii) to  a  drawer with respect to the drawer's own signature,
whether or not the drawer is also the drawee; or
(iii) to an acceptor of a draft if the  holder  in  due  course
took  the  draft  after  the  acceptance  or obtained the
acceptance without knowledge that the drawer's  signature
was unauthorized; and
(c) the  instrument  has not been materially altered, except that
this warranty is not given by a holder in due  course  acting
in good faith
(i) to the maker of a note; or
(ii) to  the  drawer  of  a draft whether or not the drawer is
also the drawee; or
(iii) to the acceptor of a draft with respect to an  alteration
made  prior to the acceptance if the holder in due course
took the draft after  the  acceptance,  even  though  the
acceptance  provided  "payable  as  originally  drawn" or
equivalent terms; or
(iv) to the acceptor of a draft with respect to an  alteration
made after the acceptance.
(2)  Any person who transfers an instrument and receives consideration
warrants to his transferee and if the transfer is by indorsement to  any
subsequent holder who takes the instrument in good faith that
(a) he  has  a  good  title to the instrument or is authorized to
obtain payment or acceptance on behalf of one who has a  good
title and the transfer is otherwise rightful; and
(b) all signatures are genuine or authorized; and
(c) the instrument has not been materially altered; and
(d) no defense of any party is good against him; and
(e) he  has  no knowledge of any insolvency proceeding instituted
with respect to the maker or acceptor or  the  drawer  of  an
unaccepted instrument.
(3)  By  transferring  "without  recourse"  the  transferor limits the
obligation stated in subsection (2) (d) to a warranty  that  he  has  no
knowledge of such a defense.
(4)  A  selling agent or broker who does not disclose the fact that he
is acting only as such gives the warranties provided  in  this  section,
but  if  he  makes  such  disclosure  warrants  only  his good faith and
authority.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-418 - Finality of Payment or Acceptance.

Section 3--418. Finality of Payment or Acceptance.
Except  for  recovery  of  bank payments as provided in the Article on
  Bank Deposits and Collections (Article 4) and except for  liability  for
  breach  of  warranty on presentment under the preceding section, payment
  or acceptance of any instrument is final in favor of  a  holder  in  due
  course,  or  a  person  who  has  in  good faith changed his position in
  reliance on the payment.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 4 - Liability of Parties › 3-419 - Conversion of Instrument; Innocent Representative.

Section 3--419. Conversion of Instrument; Innocent Representative.
(1) An instrument is converted when
(a) a  drawee  to  whom it is delivered for acceptance refuses to
return it on demand; or
(b) any person to whom it is delivered  for  payment  refuses  on
demand either to pay or to return it; or
(c) it is paid on a forged indorsement.
(2)  In an action against a drawee under subsection (1) the measure of
the drawee's liability is the face amount  of  the  instrument.  In  any
other  action  under subsection (1) the measure of liability is presumed
to be the face amount of the instrument.
(3) Subject to the  provisions  of  this  Act  concerning  restrictive
indorsements  a  representative,  including  a  depositary or collecting
bank, who has in good  faith  and  in  accordance  with  the  reasonable
commercial  standards  applicable to the business of such representative
dealt with an instrument or its proceeds on behalf of one  who  was  not
the  true  owner  is  not  liable in conversion or otherwise to the true
owner beyond the amount of any proceeds remaining in his hands.
(4) An intermediary bank or payor bank which is not a depositary  bank
is  not  liable in conversion solely by reason of the fact that proceeds
of an item indorsed restrictively (Sections 3--205 and 3--206)  are  not
paid  or  applied  consistently  with  the restrictive indorsement of an
indorser other than its immediate transferor.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 5 - Presentment, Notice of Dishonor and Protest › 3-501 - When Presentment, Notice of Dishonor, and Protest Necessary or Permissible.

Section 3--501. When   Presentment,  Notice  of  Dishonor,  and  Protest
Necessary or Permissible.
(1) Unless excused (Section 3--511) presentment is necessary to charge
secondary parties as follows:
(a) presentment for acceptance is necessary to charge the  drawer
and  indorsers  of a draft where the draft so provides, or is
payable elsewhere than at the residence or place of  business
of  the  drawee,  or  its  date  of payment depends upon such
presentment.  The  holder  may  at  his  option  present  for
acceptance any other draft payable at a stated date;
(b) presentment for payment is necessary to charge any indorser;
(c) in the case of any drawer, the acceptor of a draft payable at
a  bank or the maker of a note payable at a bank, presentment
for payment is necessary, but  failure  to  make  presentment
discharges  such  drawer, acceptor or maker only as stated in
Section 3--502 (1) (b).
(2) Unless excused (Section 3--511)
(a) notice of any dishonor is necessary to charge any indorser;
(b) in the case of any drawer, the acceptor of a draft payable at
a bank or the maker of a note payable at a  bank,  notice  of
any  dishonor  is  necessary, but failure to give such notice
discharges such drawer, acceptor or maker only as  stated  in
Section 3--502 (1) (b).
(3)  Unless  excused  (Section  3--511)  protest  of  any  dishonor is
necessary to charge the drawer and indorsers of any draft which  on  its
face  appears  to  be  drawn  or  payable  outside  of  the  states  and
territories of the United States  and  the  District  of  Columbia.  The
holder  may  at  his  option  make  protest of any dishonor of any other
instrument and in the case of a foreign draft may on insolvency  of  the
acceptor before maturity make protest for better security.
(4) Notwithstanding any provision of this section, neither presentment
nor  notice  of  dishonor nor protest is necessary to charge an indorser
who has indorsed an instrument after maturity.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 5 - Presentment, Notice of Dishonor and Protest › 3-502 - Unexcused Delay; Discharge.

Section 3--502. Unexcused Delay; Discharge.
(1)  Where  without  excuse  any  necessary  presentment  or notice of
dishonor is delayed beyond the time when it is due
(a) any indorser is discharged; and
(b) any drawer or the acceptor of a draft payable at  a  bank  or  the
maker  of  a note payable at a bank who because the drawee or payor bank
becomes insolvent during the delay is deprived of funds maintained  with
the  drawee  or  payor  bank  to  cover the instrument may discharge his
liability by written assignment to the holder of his rights against  the
drawee or payor bank in respect of such funds, but such drawer, acceptor
or maker is not otherwise discharged.
(2)  Where  without  excuse  a necessary protest is delayed beyond the
time when it is due any drawer or indorser is discharged.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 5 - Presentment, Notice of Dishonor and Protest › 3-503 - Time of Presentment.

Section 3--503. Time of Presentment.
(1)  Unless  a  different time is expressed in the instrument the time
for any presentment is determined as follows:
(a) where an instrument is payable at or a fixed period  after  a
stated date any presentment for acceptance must be made on or
before the date it is payable;
(b) where  an instrument is payable after sight it must either be
presented for acceptance or negotiated  within  a  reasonable
time after date or issue whichever is later;
(c) where  an  instrument  shows  the date on which it is payable
presentment for payment is due on that date;
(d) where an instrument is accelerated presentment for payment is
due within a reasonable time after the acceleration;
(e) with  respect  to  the  liability  of  any  secondary   party
presentment for acceptance or payment of any other instrument
is  due  within  a  reasonable  time after such party becomes
liable thereon.
(2) A reasonable time for presentment is determined by the  nature  of
the  instrument,  any  usage  of  banking  or trade and the facts of the
particular case. In the case of an uncertified check which is drawn  and
payable  within  the  United  States and which is not a draft drawn by a
bank the following are presumed to be reasonable periods within which to
present for payment or to initiate bank collection:
(a) with respect to the liability  of  the  drawer,  thirty  days
after date or issue whichever is later; and
(b) with  respect  to  the  liability  of an endorser, seven days
after his indorsement.
(3) Where any presentment is due on a day which is not a full business
day for either the person making presentment or  the  party  to  pay  or
accept,  presentment  is  due  on the next following day which is a full
business day for both parties.
(4) Presentment to be sufficient must be made at  a  reasonable  hour,
and if at a bank during its banking day.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 5 - Presentment, Notice of Dishonor and Protest › 3-504 - How Presentment Made.

Section 3--504. How Presentment Made.
(1)  Presentment  is  a demand for acceptance or payment made upon the
maker, acceptor, drawee or other payor by or on behalf of the holder.
(2) Presentment may be made
(a) by mail, in which event the time of presentment is determined
by the time of receipt of the mail; or
(b) through a clearing house; or
(c) at the place  of  acceptance  or  payment  specified  in  the
instrument  or  if  there be none at the place of business or
residence of the party to accept or pay. If neither the party
to accept or pay nor anyone authorized  to  act  for  him  is
present or accessible at such place presentment is excused.
(3) It may be made
(a) to any one of two or more makers, acceptors, drawees or other
payors; or
(b) to  any  person  who  has  authority  to  make  or refuse the
acceptance or payment.
(4) A draft accepted or a note made payable at a bank  in  the  United
States must be presented at such bank.
(5)  In  the cases described in Section 4--210 presentment may be made
in the manner and with the result stated in that section.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 5 - Presentment, Notice of Dishonor and Protest › 3-505 - Rights of Party to Whom Presentment Is Made.

Section 3--505. Rights of Party to Whom Presentment Is Made.
(1) The party to whom presentment is made may without dishonor require
(a) exhibition of the instrument; and
(b) reasonable  identification  of  the person making presentment
and evidence of his authority to make it if made for another;
and
(c) that the instrument be produced for acceptance or payment  at
a  place  specified  in  it, or if there be none at any place
reasonable in the circumstances; and
(d) a signed receipt on the instrument for any  partial  or  full
payment and its surrender upon full payment.
(2)  Failure  to  comply  with  any  such  requirement invalidates the
presentment but the person presenting has a reasonable time in which  to
comply  and  the  time  for  acceptance or payment runs from the time of
compliance.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 5 - Presentment, Notice of Dishonor and Protest › 3-506 - Time Allowed for Acceptance or Payment.

Section 3--506. Time Allowed for Acceptance or Payment.
(1) Acceptance may be deferred without dishonor until the close of the
next  business  day following presentment. The holder may also in a good
faith effort to obtain acceptance and without  either  dishonor  of  the
instrument  or  discharge  of  secondary  parties  allow postponement of
acceptance for an additional business day.
(2) Except as a longer time is allowed  in  the  case  of  documentary
drafts  drawn  under  a  letter of credit, and unless an earlier time is
agreed to by the party to pay, payment of an instrument may be  deferred
without  dishonor pending reasonable examination to determine whether it
is properly payable, but payment must be made in any  event  before  the
close of business on the day of presentment.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 5 - Presentment, Notice of Dishonor and Protest › 3-507 - Dishonor; Holder's Right of Recourse; Term Allowing Re-Presentment.

Section 3--507. Dishonor;  Holder's  Right  of  Recourse;  Term Allowing
Re-Presentment.
(1) An instrument is dishonored when
(a) a necessary or optional presentment  is  duly  made  and  due
acceptance or payment is refused or cannot be obtained within
the  prescribed  time  or  in  case  of  bank collections the
instrument is seasonably returned by  the  midnight  deadline
Section 4--301); or
(b) presentment  is  excused  and  the  instrument  is  not  duly
accepted or paid.
(2) Subject to any necessary  notice  of  dishonor  and  protest,  the
holder  has  upon  dishonor  an  immediate right of recourse against the
drawers and indorsers.
(3) Return of an instrument for lack  of  proper  indorsement  is  not
dishonor.
(4) A term in a draft or an indorsement thereof allowing a stated time
for  re-presentment  in  the  event  of  any  dishonor  of  the draft by
nonacceptance if a time draft or by nonpayment if a  sight  draft  gives
the holder as against any secondary party bound by the term an option to
waive  the  dishonor  without  affecting  the liability of the secondary
party and he may present again up to the end of the stated time.