47-3415. Obligation of indorser
A. Subject to subsections B, C, D and E of this section and to section 47-3419,
subsection D, 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 47-3115 and 47-3407. The obligation of
the indorser is owed to a person entitled to enforce the instrument or to a subsequent
indorser who paid the instrument under this section.
B. If an indorsement states that it is made "without recourse" or otherwise
disclaims liability of the indorser, the indorser is not liable under subsection A of
this section to pay the instrument.
C. If notice of dishonor of an instrument is required by section 47-3503 and notice
of dishonor complying with that section is not given to an indorser, the liability of the
indorser under subsection A of this section is discharged.
D. If a draft is accepted by a bank after an indorsement is made, the liability of
the indorser under subsection A of this section is discharged.
E. If an indorser of a check is liable under subsection A of this section and the
check is not presented for payment, or given to a depositary bank for collection, within
thirty days after the day the indorsement was made, the liability of the indorser under
subsection A of this section is discharged.
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