Sec. 412. The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument:
(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 issuer signed an incomplete instrument, according to its terms when completed, to the extent stated in IC 26-1-3.1-115 and IC 26-1-3.1-407.
The obligation is owed to a person entitled to enforce the instrument or to an endorser who paid the instrument under IC 26-1-3.1-415.
As added by P.L.222-1993, SEC.5.
Structure Indiana Code
Article 1. Uniform Commercial Code
Chapter 3.1. Negotiable Instruments
26-1-3.1-104. Negotiable Instrument
26-1-3.1-105. Issue of Instrument
26-1-3.1-106. Unconditional Promise or Order
26-1-3.1-107. Instrument Payable in Foreign Money
26-1-3.1-108. Payable on Demand or at Definite Time
26-1-3.1-109. Payable to Bearer or to Order
26-1-3.1-110. Identification of Person to Whom Instrument Is Payable
26-1-3.1-111. Place of Payment
26-1-3.1-113. Date of Instrument
26-1-3.1-114. Contradictory Terms of Instrument
26-1-3.1-115. Incomplete Instrument
26-1-3.1-116. Joint and Several Liability; Contribution
26-1-3.1-117. Other Agreements Affecting Instrument
26-1-3.1-118. Statute of Limitations
26-1-3.1-119. Notice of Right to Defend Action
26-1-3.1-202. Negotiation Subject to Rescission
26-1-3.1-203. Transfer of Instrument; Rights Acquired by Transfer
26-1-3.1-205. Special Endorsement; Blank Endorsement; Anomalous Endorsement
26-1-3.1-206. Restrictive Endorsement
26-1-3.1-301. Person Entitled to Enforce Instrument
26-1-3.1-302. Holder in Due Course
26-1-3.1-303. Value and Consideration
26-1-3.1-304. Overdue Instrument
26-1-3.1-305. Defenses and Claims in Recoupment
26-1-3.1-306. Claims to an Instrument
26-1-3.1-307. Notice of Breach of Fiduciary Duty
26-1-3.1-308. Proof of Signatures and Status as Holder in Due Course
26-1-3.1-309. Enforcement of Lost, Destroyed, or Stolen Instrument
26-1-3.1-310. Effect of Instrument on Obligation for Which Taken
26-1-3.1-311. Accord and Satisfaction by Use of Instrument
26-1-3.1-312. Lost Check; Assertion of Claim to Obligated Bank
26-1-3.1-402. Signature by Representative
26-1-3.1-403. Unauthorized Signature
26-1-3.1-404. Impostors; Fictitious Payees
26-1-3.1-405. Employer's Responsibility for Fraudulent Endorsement by Employee
26-1-3.1-406. Negligence Contributing to Forged Signature or Alteration of Instrument
26-1-3.1-408. Drawee Not Liable on Unaccepted Draft
26-1-3.1-409. Acceptance of Draft; Certified Check
26-1-3.1-410. Acceptance Varying Draft
26-1-3.1-411. Refusal to Pay Cashier's Checks, Teller's Checks, and Certified Checks
26-1-3.1-412. Obligation of Issuer of Note or Cashier's Check
26-1-3.1-413. Obligation of Acceptor
26-1-3.1-414. Obligation of Drawer
26-1-3.1-415. Obligation of Endorser
26-1-3.1-416. Transfer Warranties
26-1-3.1-417. Presentment Warranties
26-1-3.1-418. Payment or Acceptance by Mistake
26-1-3.1-419. Instruments Signed for Accommodation
26-1-3.1-420. Conversion of Instrument
26-1-3.1-502.5. Surcharge After Dishonor
26-1-3.1-503. Notice of Dishonor
26-1-3.1-504. Excused Presentment and Notice of Dishonor
26-1-3.1-505. Evidence of Dishonor
26-1-3.1-601. Discharge and Effect of Discharge
26-1-3.1-603. Tender of Payment
26-1-3.1-604. Discharge by Cancellation or Renunciation
26-1-3.1-605. Release or Extension of an Obligor's Obligation