1. This section does not apply to cashier’s checks or other drafts drawn on the drawer. 2. Ifan unaccepted draft isdishonored, the drawer is obliged to pay the draft according to itsterms at the time itwas issued or, if not issued, at the time it firstcame into possession of a holder, or if the drawer signed an incomplete instrument, according to its terms when completed, to the extent stated in sections 554.3115 and 554.3407. The obligation is owed to a person entitled to enforce the draft or to an endorser who paid the draft under section 554.3415. 3. Ifa draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained. 4. Ifa draft is accepted and the acceptor is not a bank, the obligation of the drawer to pay the draft ifthe draft isdishonored by the acceptor isthe same as the obligation of an endorser under section 554.3415, subsections 1 and 3. 5. Ifa draft states that it isdrawn “without recourse” or otherwise disclaims liability of the drawer to pay the draft, the drawer is not liable under subsection 2 to pay the draft ifthe draft is not a check. A disclaimer of the liabilitystated in subsection 2 isnot effective ifthe draft is a check. 6. Ifa check isnot presented for payment or given to a depositary bank for collection within thirty days after its date, the drawee suspends payments after expiration of the thirty-day period without paying the check, and because of the suspension of payments, the drawer is deprived of funds maintained with the drawee to cover payment of the check, the drawer to the extent deprived of funds may discharge itsobligation to pay the check by assigning to the person entitled to enforce the check the rights of the drawer against the drawee with respect to the funds.
‹ Prev All Iowa sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.