Section 34 Liability of Drawer

• Library: Commercial Law 2007

If an unaccepted draft (other than a cashier’s check, which is governed by § 400.3-412, RSMo 2000) 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,” as contemplated in § 400.3-115, RSMo 2000, regarding incomplete instruments and § 400.3-407, RSMo 2000, regarding altered instruments

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