Wisconsin Statutes & Annotations
Chapter 403 - Uniform commercial code — negotiable instruments.
403.414 - Obligation of drawer.

403.414 Obligation of drawer.
(1) This section does not apply to cashier's checks or other drafts drawn on the drawer.
(2) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft according to its terms at the time that it was issued or, if not issued, at the time that it first came into possession of a holder, or if the drawer signed an incomplete instrument, according to its terms when completed, to the extent stated in ss. 403.115 and 403.407. The obligation is owed to a person entitled to enforce the draft or to an endorser who paid the draft under s. 403.415.
(3) If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained.
(4) If a draft is accepted and the acceptor is not a bank, the obligation of the drawer to pay the draft if the draft is dishonored by the acceptor is the same as the obligation of an endorser under s. 403.415 (1) and (3).
(5) If a draft states that it is drawn “without recourse" or otherwise disclaims liability of the drawer to pay the draft, the drawer is not liable under sub. (2) to pay the draft if the draft is not a check. A disclaimer of the liability stated in sub. (2) is not effective if the draft is a check.
(6) If a check is not presented for payment or given to a depositary bank for collection within 30 days after its date, the drawee suspends payments after expiration of the 30-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 its obligation 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.
(7) A person who issues a check or other draft that is not honored upon presentment, because the drawer does not have an account with the drawee or because the drawer does not have sufficient funds in his or her account or sufficient credit with the drawee, is liable for all reasonable costs and expenses in connection with the collection of the amount for which the check or draft was written, except recovery is not permitted under this section if a person licensed under s. 138.09 or 138.14 or any other person collected or could have collected a charge for that check or other draft under s. 422.202 (1) (d) or (2m).
History: 1995 a. 449; 1997 a. 331; 2009 a. 405.

Structure Wisconsin Statutes & Annotations

Wisconsin Statutes & Annotations

Chapter 403 - Uniform commercial code — negotiable instruments.

403.102 - Subject matter.

403.103 - Definitions.

403.104 - Negotiable instrument.

403.105 - Issue of instrument.

403.106 - Unconditional promise or order.

403.107 - Instrument payable in foreign money.

403.108 - Payable on demand or at definite time.

403.109 - Payable to bearer or to order.

403.110 - Identification of person to whom instrument is payable.

403.111 - Place of payment.

403.112 - Interest.

403.113 - Date of instrument.

403.114 - Contradictory terms of instrument.

403.115 - Incomplete instrument.

403.116 - Joint and several liability; contribution.

403.117 - Other agreements affecting instrument.

403.118 - Statute of limitations.

403.119 - Notice of right to defend action.

403.201 - Negotiation.

403.202 - Negotiation subject to rescission.

403.203 - Transfer of instrument; rights acquired by transfer.

403.204 - Endorsement.

403.205 - Special endorsement; blank endorsement; anomalous endorsement.

403.206 - Restrictive endorsement.

403.207 - Reacquisition.

403.301 - Person entitled to enforce instrument.

403.302 - Holder in due course.

403.303 - Value and consideration.

403.304 - Overdue instrument.

403.305 - Defenses and claims in recoupment.

403.306 - Claims to an instrument.

403.307 - Notice of breach of fiduciary duty.

403.308 - Proof of signatures and status as holder in due course.

403.309 - Enforcement of lost, destroyed or stolen instrument.

403.310 - Effect of instrument on obligation for which taken.

403.311 - Accord and satisfaction by use of instrument.

403.312 - Lost, destroyed or stolen cashier's check, teller's check or certified check.

403.401 - Signature.

403.402 - Signature by representative.

403.403 - Unauthorized signature.

403.404 - Impostors; fictitious payees.

403.405 - Employer's responsibility for fraudulent endorsement by employee.

403.406 - Negligence contributing to forged signature or alteration of instrument.

403.407 - Alteration.

403.408 - Drawee not liable on unaccepted draft.

403.409 - Acceptance of draft; certified check.

403.410 - Acceptance varying draft.

403.411 - Refusal to pay cashier's checks, teller's checks and certified checks.

403.412 - Obligation of issuer of note or cashier's check.

403.413 - Obligation of acceptor.

403.414 - Obligation of drawer.

403.415 - Obligation of endorser.

403.416 - Transfer warranties.

403.417 - Presentment warranties.

403.418 - Payment or acceptance by mistake.

403.419 - Instruments signed for accommodation.

403.420 - Conversion of instrument.

403.501 - Presentment.

403.502 - Dishonor.

403.503 - Notice of dishonor.

403.504 - Excused presentment and notice of dishonor.

403.505 - Evidence of dishonor.

403.601 - Discharge and effect of discharge.

403.602 - Payment.

403.603 - Tender of payment.

403.604 - Discharge by cancellation or renunciation.

403.605 - Discharge of endorsers and accommodation parties.