Chapter 73 — NegotiableInstruments

 

2009 EDITION

 

 

NEGOTIABLEINSTRUMENTS

 

COMMERCIALTRANSACTIONS

 

GENERALPROVISIONS

 

73.0101 Shorttitle

 

73.0102 Applicationof chapter

 

73.0103 Definitions

 

73.0104 Negotiableinstrument; other definitions

 

73.0105 Issueof instrument

 

73.0106 Unconditionalpromise or order

 

73.0107 Instrumentpayable in foreign money

 

73.0108 Payableon demand or at definite time

 

73.0109 Payableto bearer or to order

 

73.0110 Identificationof person to whom instrument is payable

 

73.0111 Placeof payment

 

73.0112 Interest

 

73.0113 Dateof instrument

 

73.0114 Contradictoryterms of instrument

 

73.0115 Incompleteinstrument

 

73.0116 Jointand several liability; contribution

 

73.0117 Otheragreements affecting instrument

 

73.0118 Statuteof limitations

 

73.0119 Noticeof right to defend action

 

NEGOTIATION,TRANSFER AND INDORSEMENT

 

73.0201 Negotiation

 

73.0202 Negotiationsubject to rescission

 

73.0203 Transferof instrument; rights acquired by transfer

 

73.0204 Indorsement

 

73.0205 Specialindorsement; blank indorsement; anomalous indorsement

 

73.0206 Restrictiveindorsement

 

73.0207 Reacquisition

 

ENFORCEMENTOF INSTRUMENTS

 

73.0301 Personentitled to enforce instrument

 

73.0302 Holderin due course

 

73.0303 Valueand consideration

 

73.0304 Overdueinstrument

 

73.0305 Defensesand claims in recoupment

 

73.0306 Claimsto an instrument

 

73.0307 Noticeof breach of fiduciary duty

 

73.0308 Proofof signatures and status as holder in due course

 

73.0309 Enforcementof lost, destroyed or stolen instrument

 

73.0310 Effectof instrument on obligation for which taken

 

73.0311 Accordand satisfaction

 

73.0312 Lost,destroyed or stolen cashier’s check, teller’s check or certified check

 

LIABILITYOF PARTIES

 

73.0401 Signature

 

73.0402 Signatureby representative

 

73.0403 Unauthorizedsignature

 

73.0404 Impostors;fictitious payees

 

73.0405 Employer’sresponsibility for fraudulent indorsement by employee

 

73.0406 Negligencecontributing to forged signature or alteration of instrument

 

73.0407 Alteration

 

73.0408 Draweenot liable on unaccepted draft

 

73.0409 Acceptanceof draft; certified check

 

73.0410 Acceptancevarying draft

 

73.0411 Refusalto pay cashier’s checks, teller’s checks and certified checks

 

73.0412 Obligationof issuer of note or cashier’s check

 

73.0413 Obligationof acceptor

 

73.0414 Obligationof drawer

 

73.0415 Obligationof indorser

 

73.0416 Transferwarranties

 

73.0417 Presentmentwarranties

 

73.0418 Paymentor acceptance by mistake

 

73.0419 Instrumentssigned for accommodation

 

73.0420 Conversionof instrument

 

DISHONOR

 

73.0501 Presentment

 

73.0502 Dishonor

 

73.0503 Noticeof dishonor

 

73.0504 Excusedpresentment and notice of dishonor

 

73.0505 Evidenceof dishonor

 

DISCHARGEAND PAYMENT

 

73.0601 Dischargeand effect of discharge

 

73.0602 Payment

 

73.0603 Tenderof payment

 

73.0604 Dischargeby cancellation or renunciation

 

73.0605 Dischargeof indorsers and accommodation parties

 

73.010,73.020, 73.030, 73.040, 73.050, 73.060, 73.080, 73.090, 73.100, 73.110, 73.120,73.130, 73.140, 73.150, 73.160, 73.170, 73.180, 73.190, 73.200 [Repealed by1961 c.726 §427]

 

GENERALPROVISIONS

 

73.0101Short title.This chapter may be cited as Uniform Commercial Code–Negotiable Instruments. [1993c.545 §4]

 

73.0102Application of chapter. (1) This chapter applies to negotiable instruments.This chapter does not apply to money, to payment orders governed by ORS chapter74, or to securities governed by ORS chapter 78.

(2)If there is conflict between this chapter and ORS chapter 74 or 79, ORS chapter74 or 79 shall govern.

(3)Regulations of the Board of Governors of the Federal Reserve System andoperating circulars of the Federal Reserve Banks supersede any inconsistentprovision of this chapter to the extent of the inconsistency. [1993 c.545 §5;1995 c.79 §24]

 

73.0103Definitions.(1) As used in this chapter:

(a)“Acceptor” means a drawee who has accepted a draft.

(b)“Drawee” means a person ordered in a draft to make payment.

(c)“Drawer” means a person who signs or is identified in a draft as a personordering payment.

(d)“Maker” means a person who signs or is identified in a note as a personundertaking to pay.

(e)“Order” means a written instruction to pay money signed by the person givingthe instruction. The instruction may be addressed to any person, including theperson giving the instruction, or to one or more persons jointly or in thealternative but not in succession. An authorization to pay is not an orderunless the person authorized to pay is also instructed to pay.

(f)“Ordinary care” in the case of a person engaged in business means observance ofreasonable commercial standards, prevailing in the area in which the person islocated, with respect to the business in which the person is engaged. In thecase of a bank that takes an instrument for processing for collection orpayment by automated means, reasonable commercial standards do not require thebank to examine the instrument if the failure to examine does not violate thebank’s prescribed procedures and the bank’s procedures do not vary unreasonablyfrom general banking usage not disapproved under this chapter or ORS chapter74.

(g)“Party” means a party to an instrument.

(h)“Promise” means a written undertaking to pay money signed by the personundertaking to pay. An acknowledgment of an obligation by the obligor is not apromise unless the obligor also undertakes to pay the obligation.

(i)“Prove” with respect to a fact means to meet the burden of establishing thefact as defined in ORS 71.2010 (2)(h).

(j)“Remitter” means a person who purchases an instrument from the issuer if theinstrument is payable to an identified person other than the purchaser.

(2)Other definitions applying to this chapter and the sections in which theyappear are:

 

“Acceptance” ORS73.0409

“Accommodatedparty” ORS 73.0419

“Accommodationparty” ORS 73.0419

“Alteration” ORS73.0407

“Anomalousindorsement” ORS 73.0205

“Blankindorsement” ORS 73.0205

“Cashier’scheck” ORS 73.0104

“Certificateof deposit” ORS 73.0104

“Certifiedcheck” ORS 73.0409

“Check” ORS73.0104

“Consideration” ORS73.0303

“Demanddraft” ORS73.0104

“Draft” ORS73.0104

“Holderin due course” ORS 73.0302

“Incompleteinstrument” ORS 73.0115

“Indorsement” ORS73.0204

“Indorser” ORS73.0204

“Instrument” ORS73.0104

“Issue” ORS73.0105

⚖️ State Laws