Section 39 Dishonor

• Library: Commercial Law 2007

Section § 400.3-415, RSMo 2000, provides that an endorser must pay an instrument if it is dishonored but is discharged if the endorser is entitled to notice of dishonor and the notice is not given. Similarly, under § 400.3-414, RSMo 2000, a drawer must pay an unaccepted draft if it is dishonored. In the case of a demand note, the instrument is dishonored if presentment is made to the maker and the note is not paid on that date. Section 400.3-502(a)(1), RSMo 2000. In the case of a note that is not payable...