CHAPTER 594
H.P. 1308 - L.D. 1786
An Act Making Amendments to the Uniform Commercial Code Covering Provisions Dealing with Negotiable Instruments and Bank Deposits and Collections
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 11 MRSA §3-1103, sub-§(2), as enacted by PL 1993, c. 293, Pt. A, §2, is amended to read:
(2) Other definitions applying to this Article and the sections in which they appear are:
"Acceptance" |
Section 3-1409 |
"Accommodated party" |
Section 3-1419 |
"Accommodation party" |
Section 3-1419 |
"Alteration" |
Section 3-1407 |
"Anomalous indorsement" |
Section 3-1205 |
"Blank indorsement" |
Section 3-1205 |
"Cashier's check" |
Section 3-1104 |
"Certificate of deposit" |
Section 3-1104 |
"Certified check" |
Section 3-1409 |
"Check" |
Section 3-1104 |
"Consideration" |
Section 3-1303 |
"Demand draft" |
Section 3-1104 |
"Draft" |
Section 3-1104 |
"Holder in due course" |
Section 3-1302 |
"Incomplete instrument" |
Section 3-1115 |
"Indorsement" |
Section 3-1204 |
"Indorser" |
Section 3-1204 |
"Instrument" |
Section 3-1104 |
"Issue" |
Section 3-1105 |
"Issuer" |
Section 3-1105 |
"Negotiable instrument" |
Section 3-1104 |
"Negotiation" |
Section 3-1201 |
"Note" |
Section 3-1104 |
"Payable at a definite time" |
Section 3-1108 |
"Payable on demand" |
Section 3-1108 |
"Payable to bearer" |
Section 3-1109 |
"Payable to order" |
Section 3-1109 |
"Payment" |
Section 3-1602 |
"Person entitled to enforce" |
Section 3-1301 |
"Presentment" |
Section 3-1501 |
"Reacquisition" |
Section 3-1207 |
"Special indorsement" |
Section 3-1205 |
"Teller's check" |
Section 3-1104 |
"Transfer of instrument" |
Section 3-1203 |
"Traveler's check" |
Section 3-1104 |
"Value" |
Section 3-1303 |
Sec. 2. 11 MRSA §3-1104, sub-§(6), as enacted by PL 1993, c. 293, Pt. A, §2, is amended to read:
(6) "Check" means:
(a) A draft, other than a documentary draft, payable on demand and drawn on a bank; or
(b) A cashier's check or teller's check.; or
(c) A demand draft.
An instrument may be a check even though it is described on its face by another term, such as "money order."
Sec. 3. 11 MRSA §3-1104, sub-§(11) is enacted to read:
(11) "Demand draft" means a writing not signed by a customer that is created by a 3rd party under the purported authority of the customer for the purpose of charging the customer's account with a bank. A demand draft must contain the customer's account number and may contain any or all of the following:
(a) The customer's printed or typewritten name;
(b) A notation that the customer authorized the draft; and
(c) The statement "No Signature Required" or words to that effect.
"Demand draft" does not include a check purportedly drawn by and bearing the signature of a fiduciary, as defined in section 3-1307, subsection 1, paragraph (a).
Sec. 4. 11 MRSA §3-1416, sub-§(1), ¶¶(d) and (e), as enacted by PL 1993, c. 293, Pt. A, §2, are amended to read:
(d) The instrument is not subject to a defense or claim in recoupment of any party that may be asserted against the warrantor; and
(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
Sec. 5. 11 MRSA §3-1416, sub-§(1), ¶(f) is enacted to read:
(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 the drawer.
Sec. 6. 11 MRSA §3-1416, sub-§(5) is enacted to read:
(5) If the warranty in subsection (1), paragraph (f) is not given by a transferor under applicable conflict of laws rules, then the warranty is not given to that transferor when that transferor is a transferee.
Sec. 7. 11 MRSA §3-1417, sub-§(1), as enacted by PL 1993, c. 293, Pt. A, §2, is amended to read:
(1) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, the person obtaining payment or acceptance, at the time of presentment, and a previous transferor of the draft, at the time of transfer, shall warrant to the drawee making payment or accepting the draft in good faith that:
(a) The warrantor is, or was, at the time the warrantor transferred the draft, a person entitled to enforce the draft or authorized to obtain payment or acceptance of the draft on behalf of a person entitled to enforce the draft;
(b) The draft has not been altered; and
(c) The warrantor has no knowledge that the signature of the drawer of the draft is unauthorized.; and
(d) If the draft is a demand draft, creation of the demand draft according to the terms on its face was authorized by the person identified as the drawer.
Sec. 8. 11 MRSA §3-1417, sub-§§(7) and (8) are enacted to read:
(7) A demand draft is a check, as provided in section 3-1104, subsection (6).
(8) If the warranty in subsection (1), paragraph (d) is not given by a transferor under applicable conflict of laws rules, then the warranty is not given to that transferor when that transferor is a transferee.
Sec. 9. 11 MRSA §4-104, sub-§(3), as amended by PL 1993, c. 293, Pt. B, §9, is further amended to read:
(3) The following definitions in other Articles apply to this Article:
"Acceptance." |
Section 3-1409. |
"Alteration." |
Section 3-1407. |
"Cashier's check." |
Section 3-1104. |
"Certificate of deposit." |
Section 3-1104. |
"Certified Check." |
Section 3-1409. |
"Check." |
Section 3-1104. |
"Demand draft." |
Section 3-1104. |
"Draft." |
Section 3-1104. |
"Good faith." |
Section 3-1103. |
"Holder in due course." |
Section 3-1102. |
"Instrument." |
Section 3-1104. |
"Notice of dishonor." |
Section 3-1503. |
"Order." |
Section 3-1103. |
"Ordinary care." |
Section 3-1103. |
"Person entitled to enforce." |
Section 3-1301. |
"Presentment." |
Section 3-1501. |
"Promise." |
Section 3-1103. |
"Prove." |
Section 3-1103. |
"Teller's check." |
Section 3-1104. |
"Unauthorized signature." |
Section 3-1403. |
Sec. 10. 11 MRSA §4-207-A, sub-§(1), ¶¶(d) and (e), as enacted by PL 1993, c. 293, Pt. B, §25, are amended to read:
(d) The item is not subject to a defense or claim in recoupment (section 3-1305, subsection (1)) of any party that can be asserted against the warrantor; and
(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
Sec. 11. 11 MRSA §4-207-A, sub-§(1), ¶(f) is enacted to read:
(f) If the item is a demand draft, creation of the item according to the terms on its face was authorized by the person identified as the drawer.
Sec. 12. 11 MRSA §4-207-A, sub-§(6) is enacted to read:
(6) If the warranty in subsection (1), paragraph (f) is not given by a transferor or collecting bank under applicable conflict of laws rules, then the warranty is not given to that transferor when that transferor is a transferee nor to any prior collecting bank of that transferee.
Sec. 13. 11 MRSA §4-207-B, sub-§(1), as enacted by PL 1993, c. 293, Pt. B, §26, is amended to read:
(1) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, the person obtaining payment or acceptance, at the time of presentment, and a previous transferor of the draft, at the time of transfer, warrant to the drawee that pays or accepts the draft in good faith that:
(a) The warrantor is, or was, at the time the warrantor transferred the draft, a person entitled to enforce the draft or authorized to obtain payment or acceptance of the draft on behalf of a person entitled to enforce the draft;
(b) The draft has not been altered; and
(c) The warrantor has no knowledge that the signature of the purported drawer of the draft is unauthorized.; and
(d) If the draft is a demand draft, creation of the demand draft according to the terms on its face was authorized by the person identified as the drawer.
Sec. 14. 11 MRSA §4-207-B, sub-§§(7) and (8) are enacted to read:
(7) A demand draft is a check, as provided in section 3-1104, subsection (6).
(8) If the warranty in subsection (1), paragraph (d) is not given by a transferor under applicable conflict of laws rules, then the warranty is not given to the transferor when that transferor is a transferee.
Effective July 30, 2004, unless otherwise indicated.
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