Sec. 3408.
A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the drawee accepts it.
History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
Structure Michigan Compiled Laws
Chapter 440 - Uniform Commercial Code
Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)
Article 3 - Negotiable Instruments (440.3101...440.3805)
174-1962-3-4 - Part 4 Liability of Parties (440.3401...440.3420)
Section 440.3401 - Liability; Signature.
Section 440.3402 - Liability of Parties; Signature by Authorized Representative.
Section 440.3403 - Unauthorized Signature; Effect.
Section 440.3407 - Alteration; Definition; Discharge of Party Affected; Enforcement of Rights.
Section 440.3408 - Check or Draft; Operation as Assignment.
Section 440.3410 - Acceptance Varying From Terms of Draft.
Section 440.3413 - Draft; Obligation to Pay According to Terms; Amount.
Section 440.3415 - Dishonored Instrument; Obligation and Liability of Endorser.
Section 440.3416 - Transfer of Instrument for Consideration; Endorsement; Warranties.
Section 440.3417 - Presentment of Unaccepted or Dishonored Draft; Rights of Parties.
Section 440.3418 - Payment or Acceptance by Mistake.