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: 1978 Comp., § 55-3-408, enacted by Laws 1992, ch. 114, § 133.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
1. This section is a restatement of former section 3-409(1). Subsection (2) of former Section 3-409 is deleted as misleading and superfluous. Comment 3 says of Subsection (2): "It is intended to make it clear that this section does not in any way affect any liability which may arise apart from the instrument." In reality Subsection (2) did not make anything clear and was a source of confusion. If all it meant was that a bank that has not certified a check may engage in other conduct that might make it liable to a holder, it stated the obvious and was superfluous. Section 1-103 [55-1-103 NMSA 1978] is adequate to cover those cases.
2. Liability with respect to drafts may arise under other law. For example, Section 4-302 [55-4-302 NMSA 1978] imposes liability on a payor bank for late return of an item.
Repeals. — Laws 1992, ch. 114, § 237 repealed former 55-3-408 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-408, relating to consideration, effective July 1, 1992. Laws 1992, ch. 114, § 133, enacted a new section, effective July 1, 1992. For provisions of former section, see the 1991 NMSA 1978 on NMOneSource.com.
Structure New Mexico Statutes
Chapter 55 - Uniform Commercial Code
Article 3 - Negotiable Instruments
Section 55-3-402 - Signature by representative.
Section 55-3-403 - Unauthorized signature.
Section 55-3-404 - Impostors; fictitious payees.
Section 55-3-405 - Employer's responsibility for fraudulent indorsement by employee.
Section 55-3-406 - Negligence contributing to forged signature or alteration of instrument.
Section 55-3-407 - Alteration.
Section 55-3-408 - Drawee not liable on unaccepted draft.
Section 55-3-409 - Acceptance of draft; certified check.
Section 55-3-410 - Acceptance varying draft.
Section 55-3-411 - Refusal to pay cashier's checks, teller's checks, and certified checks.
Section 55-3-412 - Obligation of issuer of note or cashier's check.
Section 55-3-413 - Obligation of acceptor.
Section 55-3-414 - Obligation of drawer.
Section 55-3-415 - Obligation of indorser.
Section 55-3-416 - Transfer warranties.
Section 55-3-417 - Presentment warranties.
Section 55-3-418 - Payment or acceptance by mistake.