Asked by Nicole White on May 10, 2024
Verified
According to the Uniform Commercial Code,a party who signs as an issuer of an instrument is liable for the amount of the instrument ________.
A) as soon as it is issued
B) three business days after the instrument is executed
C) three calendar days after the instrument is presented for payment
D) three business days after the instrument is presented for payment
E) three calendar days after the instrument is executed
Issuer
An entity that develops, registers, and sells securities to finance its operations.
Uniform Commercial Code
A comprehensive set of laws governing commercial transactions in the United States, intended to standardize and simplify transactions.
- Separate and define the differences in primary and secondary liability pertaining to negotiable instruments.
Verified Answer
AL
Autumn LarsenMay 12, 2024
Final Answer :
A
Explanation :
Uniform Commercial Code Section 3-412 states that a party who signs as an issuer of an instrument is liable for the amount of the instrument as soon as it is issued.For example,a bank that issues a cashier's check is primarily liable for the amount of the check as soon as the cashier's check is created.
Learning Objectives
- Separate and define the differences in primary and secondary liability pertaining to negotiable instruments.