13 Pa.C.S. § 3414 Obligation of Drawer

• Library: Pennsylvania Statutes
• Edition: 2023
• Currency: Current through P.A. Acts 23-35
• Year: 2023
• Citation: 13 Pa.C.S. § 3414

(a) Scope of section.--This section does not apply to cashier's checks or other drafts drawn on the drawer.

(b) Obligation of drawer if unaccepted draft is dishonored.--If an unaccepted draft is dishonored, the drawer is obliged to pay the draft:

(1) 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

(2) if the drawer signed an incomplete instrument, according to its terms when completed, to the extent stated in sections 3115 (relating to incomplete instrument) and 3407 (relating to alteration).

The obligation is owed to a person entitled to enforce the draft or to an indorser who paid the draft under section 3415 (relating to obligation of indorser).

(c) Draft accepted by bank.--If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained.

(d) Draft accepted by drawer other than bank.--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 section 3415(a) and (c).