reglab/statecodes huggingface dataset:
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 3 - Enforcement of Instruments › Section 301 - Person entitled to enforce instrument.

70A-3-301.
Person entitled to enforce instrument.
"Person entitled to enforce" an instrument means the holder of the instrument, a nonholder in possession of the instrument who has the rights of a holder, or a person not in possession of the instrument who is entitled to enforce the instrument pursuant to Section 70A-3-309 or Subsection 70A-3-418(4). A person may be a person entitled to enforce the instrument even though he is not the owner of the instrument or is in wrongful possession of the instrument.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 3 - Enforcement of Instruments › Section 302 - Holder in due course.

70A-3-302.
Holder in due course.
(1) Subject to Subsection (3) and Subsection 70A-3-106(4), "holder in due course" means the holder of an instrument if:
(a) the instrument when issued or negotiated to the holder does not bear such apparent evidence of forgery or alteration or is not otherwise so irregular or incomplete as to call into question its authenticity; and
(b) the holder took the instrument for value, in good faith, without notice that the instrument is overdue or has been dishonored or that there is an uncured default with respect to payment of another instrument issued as part of the same series, without notice that the instrument contains an unauthorized signature or has been altered, without notice of any claim to the instrument described in Section 70A-3-306, and without notice that any party has a defense or claim in recoupment described in Subsection 70A-3-305(1).
(2) Notice of discharge of a party, other than discharge in an insolvency proceeding, is not notice of a defense under Subsection (1), but discharge is effective against a person who became a holder in due course with notice of the discharge. Public filing or recording of a document does not of itself constitute notice of a defense, claim in recoupment, or claim to the instrument.
(3) Except to the extent a transferor or predecessor in interest has rights as a holder in due course, a person does not acquire rights of a holder in due course of an instrument taken:
(a) by legal process or by purchase in an execution, bankruptcy, or creditor's sale or similar proceeding;
(b) by purchase as part of a bulk transaction not in ordinary course of business of the transferor; or
(c) as the successor in interest to an estate or other organization.
(4) If, under Subsection 70A-3-303(1)(a), the promise of performance that is the consideration for an instrument has been partially performed, the holder may assert rights as a holder in due course of the instrument only to the fraction of the amount payable under the instrument equal to the value of the partial performance divided by the value of the promised performance.
(5) If the person entitled to enforce an instrument has only a security interest in the instrument, and the person obliged to pay the instrument has a defense, claim in recoupment, or claim to the instrument that may be asserted against the person who granted the security interest, the person entitled to enforce the instrument may assert rights as a holder in due course only to an amount payable under the instrument which, at the time of enforcement of the instrument, does not exceed the amount of the unpaid obligation secured.
(6) To be effective, notice must be received at a time and in a manner that gives a reasonable opportunity to act on it.
(7) This section is subject to any law limiting status as a holder in due course in particular classes of transactions.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 3 - Enforcement of Instruments › Section 303 - Value and consideration.

70A-3-303.
Value and consideration.
(1) An instrument is issued or transferred for value if:
(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; or
(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.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 3 - Enforcement of Instruments › Section 304 - Overdue instrument.

70A-3-304.
Overdue instrument.
(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; or
(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.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 3 - Enforcement of Instruments › Section 305 - Defenses and claims in recoupment.

70A-3-305.
Defenses and claims in recoupment.
(1) Except as stated in Subsection (2), the right to enforce the obligation of a party to pay an instrument is subject to the following:
(a) a defense of the obligor based on:
(i) infancy of the obligor to the extent it is a defense to a simple contract;
(ii) duress, lack of legal capacity, or illegality of the transaction which, under other law, nullifies the obligation of the obligor;
(iii) fraud that induced the obligor to sign the instrument with neither knowledge nor reasonable opportunity to learn of its character or its essential terms; or
(iv) discharge of the obligor in insolvency proceedings;
(b) a defense of the obligor stated in another section of this chapter or a defense of the obligor that would be available if the person entitled to enforce the instrument were enforcing a right to payment under a simple contract; and
(c)
(i) a claim in recoupment of the obligor against the original payee of the instrument if the claim arose from the transaction that gave rise to the instrument;
(ii) but the claim of the obligor may be asserted against a transferee of the instrument only to reduce the amount owing on the instrument at the time the action is brought.
(2) The right of a holder in due course to enforce the obligation of a party to pay the instrument is subject to defenses of the obligor stated in Subsection (1)(a), but is not subject to defenses of the obligor stated in Subsection (1)(b) or claims in recoupment stated in Subsection (1)(c) against a person other than the holder.
(3) Except as stated in Subsection (4), in an action to enforce the obligation of a party to pay the instrument, the obligor may not assert against the person entitled to enforce the instrument a defense, claim in recoupment, or claim to the instrument under Section 70A-3-306, of another person, but the other person's claim to the instrument may be asserted by the obligor if the other person is joined in the action and personally asserts the claim against the person entitled to enforce the instrument. An obligor is not obliged to pay the instrument if the person seeking enforcement of the instrument does not have rights of a holder in due course and the obligor proves that the instrument is a lost or stolen instrument.
(4) In an action to enforce the obligation of an accommodation party to pay an instrument, the accommodation party may assert against the person entitled to enforce the instrument any defense or claim in recoupment under Subsection (1) that the accommodated party could assert against the person entitled to enforce the instrument, except the defenses of discharge in insolvency proceedings, infancy, and lack of legal capacity.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 3 - Enforcement of Instruments › Section 306 - Claims to an instrument.

70A-3-306.
Claims to an instrument.
A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a property or possessory right in the instrument or its proceeds, including a claim to rescind a negotiation and to recover the instrument or its proceeds. A person having rights of a holder in due course takes free of the claim to the instrument.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 3 - Enforcement of Instruments › Section 307 - Notice of breach of fiduciary duty.

70A-3-307.
Notice of breach of fiduciary duty.
(1) 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 Subsection (1)(a) is owed.
(2) If an instrument is taken from a fiduciary for payment or collection or for value, the taker has knowledge of the fiduciary status of the fiduciary, and 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.
Amended by Chapter 324, 2010 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 3 - Enforcement of Instruments › Section 308 - Proof of signatures and status as holder in due course.

70A-3-308.
Proof of signatures and status as holder in due course.
(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 Subsection 70A-3-402(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 70A-3-301, unless the defendant proves a defense or claim in recoupment. If a defense or claim in recoupment is proved, the right to payment of the plaintiff is subject to the defense or claim, except to the extent the plaintiff proves that he has rights of a holder in due course which are not subject to the defense or claim.
Enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 3 - Enforcement of Instruments › Section 309 - Enforcement of lost, destroyed, or stolen instrument.

70A-3-309.
Enforcement of lost, destroyed, or stolen instrument.
(1) A person not in possession of an instrument is entitled to enforce the instrument if:
(a) the person was in possession of the instrument and entitled to enforce it when loss of possession occurred;
(b) the loss of possession was not the result of a transfer by the person or a lawful seizure; and
(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 70A-3-308 applies to the case as if the person seeking enforcement had produced the instrument. The court may not enter judgment in favor of the person seeking enforcement unless it finds that the person required to pay the instrument is adequately protected against loss that might occur by reason of a claim by another person to enforce the instrument. Adequate protection may be provided by any reasonable means.
Enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 3 - Enforcement of Instruments › Section 310 - Effect of instrument on obligation for which taken.

70A-3-310.
Effect of instrument on obligation for which taken.
(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 indorser 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 Subsection (2)(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 that stated in Subsection (1) if the instrument is one on which a bank is liable as maker or acceptor, or that stated in Subsection (2) in any other case.
Amended by Chapter 324, 2010 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 3 - Enforcement of Instruments › Section 311 - Accord and satisfaction by use of instrument.

70A-3-311.
Accord and satisfaction by use of instrument.
(1) If a person against whom a claim is asserted proves that that person in good faith tendered an instrument to the claimant as full satisfaction of the claim, the amount of the claim was unliquidated or subject to a bona fide dispute, and the claimant obtained payment of the instrument, the following subsections apply.
(2) Unless Subsection (3) applies, the claim is discharged if the person against whom the claim is asserted proves that the instrument or an accompanying written communication contained a conspicuous statement to the effect that the instrument was tendered as full satisfaction of the claim.
(3) Subject to Subsection (4), a claim is not discharged under Subsection (2) if either of the following applies:
(a) The claimant, if an organization, proves that:
(i) within a reasonable time before the tender, the claimant sent a conspicuous statement to the person against whom the claim is asserted, which states that communications concerning disputed debts, including an instrument tendered as full satisfaction of a debt, are to be sent to a designated person, office, or place; and
(ii) the instrument or accompanying communication was not received by that designated person, office, or place.
(b) The claimant, whether or not an organization, proves that within 90 days after payment of the instrument, the claimant tendered repayment of the amount of the instrument to the person against whom the claim is asserted. This Subsection (3)(b) does not apply if the claimant is an organization that sent a statement complying with Subsection (3)(a)(i).
(4) A claim is discharged if the person against whom the claim is asserted proves that within a reasonable time before collection of the instrument was initiated, the claimant, or an agent of the claimant having direct responsibility with respect to the disputed obligation, knew that the instrument was tendered in full satisfaction of the claim.
(5) Merely writing a statement on a check which declares that a child support obligation is paid in full is not sufficient to bind the recipient who endorses the check. Child support obligations are considered owing unless paid in full or otherwise ordered by a tribunal.
Amended by Chapter 176, 2003 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 401 - Signature.

70A-3-401.
Signature.
(1) A person is not liable on an instrument unless:
(a) the person signed the instrument; or
(b) the person is represented by an agent or representative who signed the instrument and the signature is binding on the represented person under Section 70A-3-402.
(2) A signature may be made:
(a) manually or by means of a device or machine; and
(b) by the use of any name, including a trade or assumed name, or by a word, mark, or symbol executed or adopted by a person with present intention to authenticate a writing.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 402 - Signature by representative.

70A-3-402.
Signature by representative.
(1) If a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person or the name of the signer, the represented person is bound by the signature to the same extent the represented person would be bound if the signature were on a simple contract. If the represented person is bound, the signature of the representative is the "authorized signature of the represented person" and the represented person is liable on the instrument, whether or not identified in the instrument.
(2) If a representative signs the name of the representative to an instrument and the signature is an authorized signature of the represented person, the following rules apply:
(a) If the form of the signature shows unambiguously that the signature is made on behalf of the represented person who is identified in the instrument, the representative is not liable on the instrument.
(b) Subject to Subsection (3), if the form of the signature does not show unambiguously that the signature is made in a representative capacity or the represented person is not identified in the instrument, the representative is liable on the instrument to a holder in due course that took the instrument without notice that the representative was not intended to be liable on the instrument. With respect to any other person, the representative is liable on the instrument unless the representative proves that the original parties did not intend the representative to be liable on the instrument.
(3) If a representative signs the name of the representative as drawer of a check without indication of the representative status and the check is payable from an account of the represented person who is identified on the check, the signer is not liable on the check if the signature is an authorized signature of the represented person.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 403 - Unauthorized signature.

70A-3-403.
Unauthorized signature.
(1) Unless otherwise provided in this chapter or Title 70A, Chapter 4, Uniform Commercial Code - Bank Deposits and Collections, an unauthorized signature is ineffective except as the signature of the unauthorized signer in favor of a person who in good faith pays the instrument or takes it for value. An unauthorized signature may be ratified for all purposes of this chapter.
(2) If the signature of more than one person is required to constitute the authorized signature of an organization, the signature of the organization is unauthorized if one of the required signatures is lacking.
(3) The civil or criminal liability of a person who makes an unauthorized signature is not affected by any provision of this chapter which makes the unauthorized signature effective for the purposes of this chapter.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 404 - Impostors -- Fictitious payees.

70A-3-404.
Impostors -- Fictitious payees.
(1) If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or to a person acting in concert with the impostor, by impersonating the payee of the instrument or a person authorized to act for the payee, an indorsement of the instrument by any person in the name of the payee is effective as the indorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.
(2) If a person whose intent determines to whom an instrument is payable, Subsection 70A-3-110(1) or (2) does not intend the person identified as payee to have any interest in the instrument, or the person identified as payee of an instrument is a fictitious person, the following rules apply until the instrument is negotiated by special indorsement:
(a) Any person in possession of the instrument is its holder.
(b) An indorsement by any person in the name of the payee stated in the instrument is effective as the indorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.
(3) Under Subsection (1) or (2), an indorsement is made in the name of a payee if it is made in a name substantially similar to that of the payee, or the instrument, whether or not indorsed, is deposited in a depositary bank to an account in a name substantially similar to that of the payee.
(4) With respect to an instrument to which Subsection (1) or (2) applies, if a person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss resulting from payment of the instrument, the person bearing the loss may recover from the person failing to exercise ordinary care to the extent the failure to exercise ordinary care contributed to the loss.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 405 - Employer's responsibility for fraudulent indorsement by employee.

70A-3-405.
Employer's responsibility for fraudulent indorsement by employee.
(1) In this section:
(a) "Employee" includes an independent contractor and employee of an independent contractor retained by the employer.
(b) "Fraudulent indorsement" means in the case of an instrument payable to the employer, a forged indorsement purporting to be that of the employer, or in the case of an instrument with respect to which the employer is the issuer, a forged indorsement purporting to be that of the person identified as payee.
(c)
(i) "Responsibility" with respect to instruments means authority to sign or indorse instruments on behalf of the employer, to process instruments received by the employer for bookkeeping purposes, for deposit to an account, or for other disposition, to prepare or process instruments for issue in the name of the employer, to supply information determining the names or addresses of payees of instruments to be issued in the name of the employer, to control the disposition of instruments to be issued in the name of the employer, or to act otherwise with respect to instruments in a responsible capacity.
(ii) "Responsibility" does not include authority that merely allows an employee to have access to instruments or blank or incomplete instrument forms that are being stored or transported or are part of incoming or outgoing mail, or similar access.
(2) For the purpose of determining the rights and liabilities of a person who, in good faith, pays an instrument or takes it for value or for collection, if an employer entrusted an employee with responsibility with respect to the instrument and the employee or a person acting in concert with the employee makes a fraudulent indorsement of the instrument, the indorsement is effective as the indorsement of the person to whom the instrument is payable if it is made in the name of that person. If the person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss resulting from the fraud, the person bearing the loss may recover from the person failing to exercise ordinary care to the extent the failure to exercise ordinary care contributed to the loss.
(3) Under Subsection (2), an indorsement is made in the name of the person to whom an instrument is payable if it is made in a name substantially similar to the name of that person, or the instrument, whether or not indorsed, is deposited in a depositary bank to an account in a name substantially similar to the name of that person.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 406 - Negligence contributing to forged signature or alteration of instrument.

70A-3-406.
Negligence contributing to forged signature or alteration of instrument.
(1) A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged signature on an instrument is precluded from asserting the alteration or the forgery against a person who, in good faith, pays the instrument or takes it for value or for collection.
(2) Under Subsection (1), if the person asserting the preclusion fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss, the loss is allocated between the person precluded and the person asserting the preclusion according to the extent to which the failure of each to exercise ordinary care contributed to the loss.
(3) Under Subsection (1), the burden of proving failure to exercise ordinary care is on the person asserting the preclusion. Under Subsection (2), the burden of proving failure to exercise ordinary care is on the person precluded.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 407 - Alteration.

70A-3-407.
Alteration.
(1) "Alteration" means an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party.
(2) Except as provided in Subsection (3), an alteration fraudulently made discharges a party whose obligation is affected by the alteration unless that party assents or is precluded from asserting the alteration. No other alteration discharges a party, and the instrument may be enforced according to its original terms.
(3) A payor bank or drawee paying a fraudulently altered instrument or a person taking it for value, in good faith and without notice of the alteration, may enforce rights with respect to the instrument according to its original terms, or in the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 408 - Drawee not liable on unaccepted draft.

70A-3-408.
Drawee not liable on unaccepted draft.
A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the drawee accepts it.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 409 - Acceptance of draft -- Certified check.

70A-3-409.
Acceptance of draft -- Certified check.
(1) "Acceptance" means the drawee's signed agreement to pay a draft as presented. It must be written on the draft and may consist of the drawee's signature alone. Acceptance may be made at any time and becomes effective when notification pursuant to instructions is given or the accepted draft is delivered for the purpose of giving rights on the acceptance to any person.
(2) A draft may be accepted although it has not been signed by the drawer, is otherwise incomplete, is overdue, or has been dishonored.
(3) If a draft is payable at a fixed period after sight and the acceptor fails to date the acceptance, the holder may complete the acceptance by supplying a date in good faith.
(4) "Certified check" means a check accepted by the bank on which it is drawn. Acceptance may be made as stated in Subsection (1) or by a writing on the check which indicates that the check is certified. The drawee of a check has no obligation to certify the check, and refusal to certify is not dishonor of the check.
Amended by Chapter 12, 1994 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 410 - Acceptance varying draft.

70A-3-410.
Acceptance varying draft.
(1) If the terms of a drawee's acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat the draft as dishonored. In that case, the drawee may cancel the acceptance.
(2) The terms of a draft are not varied by an acceptance to pay at a particular bank or place in the United States, unless the acceptance states that the draft is to be paid only at that bank or place.
(3) If the holder assents to an acceptance varying the terms of a draft, the obligation of each drawer and indorser that does not expressly assent to the acceptance is discharged.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 411 - Refusal to pay cashier's checks, teller's checks, and certified checks.

70A-3-411.
Refusal to pay cashier's checks, teller's checks, and certified checks.
(1) In this section, "obligated bank" means the acceptor of a certified check or the issuer of a cashier's check or teller's check bought from the issuer.
(2) If the obligated bank wrongfully refuses to pay a cashier's check or certified check, stops payment of a teller's check, or refuses to pay a dishonored teller's check, the person asserting the right to enforce the check is entitled to compensation for expenses and loss of interest resulting from the nonpayment and may recover consequential damages if the obligated bank refuses to pay after receiving notice of particular circumstances giving rise to the damages.
(3) Expenses or consequential damages under Subsection (2) are not recoverable if the refusal of the obligated bank to pay occurs because the bank suspends payments, the obligated bank asserts a claim or defense of the bank that it has reasonable grounds to believe is available against the person entitled to enforce the instrument, the obligated bank has a reasonable doubt whether the person demanding payment is the person entitled to enforce the instrument, or payment is prohibited by law.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 412 - Obligation of issuer of note or cashier's check.

70A-3-412.
Obligation of issuer of note or cashier's check.
The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder, or if the issuer signed an incomplete instrument, according to its terms when completed, to the extent stated in Sections 70A-3-115 and 70A-3-407. The obligation is owed to a person entitled to enforce the instrument or to an indorser who paid the instrument under Section 70A-3-415.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 413 - Obligation of acceptor.

70A-3-413.
Obligation of acceptor.
(1) The acceptor of a draft is obliged to pay the draft according to its terms at the time it was accepted, even though the acceptance states that the draft is payable "as originally drawn" or equivalent terms, if the acceptance varies the terms of the draft, according to the terms of the draft as varied, or if the acceptance is of a draft that is an incomplete instrument, according to its terms when completed, to the extent stated in Sections 70A-3-115 and 70A-3-407. The obligation is owed to a person entitled to enforce the draft or to the drawer or an indorser who paid the draft under Section 70A-3-414 or 70A-3-415.
(2) If the certification of a check or other acceptance of a draft states the amount certified or accepted, the obligation of the acceptor is that amount. If the certification or acceptance does not state an amount, the amount of the instrument is subsequently raised, and the instrument is then negotiated to a holder in due course, the obligation of the acceptor is the amount of the instrument at the time it was taken by the holder in due course.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 414 - Obligation of drawer.

70A-3-414.
Obligation of drawer.
(1) This section does not apply to cashier's checks or other drafts drawn on the drawer.
(2) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder, or if the drawer signed an incomplete instrument, according to its terms when completed, to the extent stated in Sections 70A-3-115 and 70A-3-407. The obligation is owed to a person entitled to enforce the draft or to an indorser who paid the draft under Section 70A-3-415.
(3) If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained.
(4) If a draft is accepted and the acceptor is not a bank, the obligation of the drawer to pay the draft if the draft is dishonored by the acceptor is the same as the obligation of an indorser under Subsections 70A-3-415(1) and (3).
(5) If a draft states that it is drawn "without recourse" or otherwise disclaims liability of the drawer to pay the draft, the drawer is not liable under Subsection (2) to pay the draft if the draft is not a check. A disclaimer of the liability stated in Subsection (2) is not effective if the draft is a check.
(6) If a check is not presented for payment or given to a depositary bank for collection within 30 days after its date, the drawee suspends payments after expiration of the 30-day period without paying the check, and because of the suspension of payments, the drawer is deprived of funds maintained with the drawee to cover payment of the check, the drawer to the extent deprived of funds may discharge its obligation to pay the check by assigning to the person entitled to enforce the check the rights of the drawer against the drawee with respect to the funds.
Repealed and Re-enacted by Chapter 237, 1993 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 415 - Obligation of indorser.

70A-3-415.
Obligation of indorser.
(1) Subject to Subsections (2), (3), and (4) and to Subsection 70A-3-419(4), if an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument according to the terms of the instrument at the time it was indorsed, or if the indorser indorsed an incomplete instrument, according to its terms when completed, to the extent stated in Sections 70A-3-115 and 70A-3-407. The obligation of the indorser is owed to a person entitled to enforce the instrument or to a subsequent indorser who paid the instrument under this section.
(2) If an indorsement states that it is made "without recourse" or otherwise disclaims liability of the indorser, the indorser is not liable under Subsection (1) to pay the instrument.
(3) If notice of dishonor of an instrument is required by Section 70A-3-503 and notice of dishonor complying with that section is not given to an indorser, the liability of the indorser under Subsection (1) is discharged.
(4) If a draft is accepted by a bank after an indorsement is made, the liability of the indorser under Subsection (1) is discharged.
(5) If an indorser of a check is liable under Subsection (1) and the check is not presented for payment, or given to a depositary bank for collection, within 30 days after the day the indorsement was made, the liability of the indorser under Subsection (1) is discharged.
Amended by Chapter 13, 1998 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 416 - Transfer warranties.

70A-3-416.
Transfer warranties.
(1) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee that:
(a) the warrantor is a person entitled to enforce the instrument;
(b) all signatures on the instrument are authentic and authorized;
(c) the instrument has not been altered;
(d) the instrument is not subject to a defense or claim in recoupment of any party which can be asserted against the warrantor;
(e) the warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer; and
(f) if the instrument is a demand draft, creation of the instrument according to the terms on its face was authorized by the person identified as drawer.
(2) A person to whom the warranties under Subsection (1) are made and who took the instrument in good faith may recover from the warrantor, as damages for breach of warranty, an amount equal to the loss suffered as a result of the breach, but not more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach.
(3) The warranties stated in Subsection (1) cannot be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within 30 days after the claimant has reason to know of the breach and the identity of the warrantor, the liability of the warrantor under Subsection (2) is discharged to the extent of any loss caused by the delay in giving notice of the claim.
(4) A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.
(5) If the warranty in Subsection (1)(f) is not given by a transferor under applicable conflict of law rules, the warranty is not given to that transferor when that transferor is a transferee.
Amended by Chapter 60, 1998 General Session
2023 Utah Code › Title 70A - Uniform Commercial Code › Chapter 3 - Uniform Commercial Code - Negotiable Instruments › Part 4 - Liability of Parties › Section 418 - Payment or acceptance by mistake.

70A-3-418.
Payment or acceptance by mistake.
(1) Except as provided in Subsection (3), if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that payment of the draft had not been stopped pursuant to Section 70A-4-403, or the signature of the drawer of the draft was authorized, the drawee may recover the amount of the draft from the person to whom or for whose benefit payment was made or, in the case of acceptance, may revoke the acceptance. Rights of the drawee under this subsection are not affected by failure of the drawee to exercise ordinary care in paying or accepting the draft.
(2) Except as provided in Subsection (3), if an instrument has been paid or accepted by mistake and the case is not covered by Subsection (1), the person paying or accepting may, to the extent permitted by the law governing mistake and restitution, recover the payment from the person to whom or for whose benefit payment was made, or in the case of acceptance, may revoke the acceptance.
(3) The remedies provided by Subsection (1) or (2) may not be asserted against a person who took the instrument in good faith and for value or who in good faith changed position in reliance on the payment or acceptance. This subsection does not limit remedies provided by Section 70A-3-417 or 70A-4-407.
(4) Notwithstanding Section 70A-4-215, if an instrument is paid or accepted by mistake and the payor or acceptor recovers payment or revokes acceptance under Subsection (1) or (2), the instrument is deemed not to have been paid or accepted and is treated as dishonored, and the person from whom payment is recovered has rights as a person entitled to enforce the dishonored instrument.
Repealed and Re-enacted by Chapter 237, 1993 General Session