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84-3-415. Obligation of endorser. (a) Subject to subsections (b), (c) and (d) and to K.S.A. 84-3-419(d), if an instrument is dishonored, an endorser is obliged to pay the amount due on the instrument (1) according to the terms of the instrument at the time it was endorsed, or (2) if the endorser endorsed an incomplete instrument, according to its terms when completed, to the extent stated in K.S.A. 84-3-115 and 84-3-407. The obligation of the endorser is owed to a person entitled to enforce the instrument or to a subsequent endorser who paid the instrument under this section.

(b) If an endorsement states that it is made "without recourse" or otherwise disclaims liability of the endorser, the endorser is not liable under subsection (a) to pay the instrument.

(c) If notice of dishonor of an instrument is required by K.S.A. 84-3-503 and notice of dishonor complying with that section is not given to an endorser, the liability of the endorser under subsection (a) is discharged.

(d) If a draft is accepted by a bank after an endorsement is made, the liability of the endorser under subsection (a) is discharged.

(e) If an endorser of a check is liable under subsection (a) and the check is not presented for payment, or given to a depository bank for collection, within 30 days after the day the endorsement was made, the liability of the endorser under subsection (a) is discharged.

History: L. 1991, ch. 296, § 52; February 1, 1992.

Revisor's Note:

Former section 84-3-415 was repealed by L. 1991, ch. 296, § 111 and the number reassigned to the current text.


This section is identical to the 1995 Official Text with two exceptions. The lower case roman numerals have been replaced by arabic numbers. There was an amendment of 3-415(a) of the Official Text in 1993. It added subsection (e) to the list of subsections to which 3-415(a) is subject. Kansas has not conformed its provision at this time. This section is derived from the former 84-3-414(1), 84-3-411(1), 84-3-501(1)(b) and (c), and 84-3-502(1)(a). Historical case and statutory references can be obtained from the 1965 and 1983 bound volume 7 of the Kansas Statutes Annotated.

This section sets forth the basic contractual liability of indorsers. They are normally liable to one another in the order in which they indorse the instrument, but the indorsers may prove otherwise. See Official Comment #5. Indorser liability may be eliminated altogether if the indorsement is "without recourse," which is often advisable in circumstances where the payee is merely a conduit for the payment, such as a fiduciary forwarding a check to the person represented. Thus a prevailing party's attorney receiving a check may want to specially indorse it to the client "without recourse" to avoid the indorser's liability should the check be dishonored. See generally 84-3-414(e) Kansas Comment 1996.

Subsections (c) and (e). These important subsections set forth the sanctions for unexcused delay in presentment or dishonor. Under subsection (c), any indorser is absolutely discharged if proper notice of dishonor is not given. The requirements for notice of dishonor are given in 84-3-503(c). If the transferee of a bank check does not initiate collection until more than 30 days (increased from the former seven days) after an indorsement is made, the indorser is discharged. All indorsers are acting as sureties for the debt of another. Because of this, delays in presentment or in giving notice of dishonor will discharge the indorsers. Notice of dishonor must be given by persons other than banks within 30 days of when it was received. The instrument must be presented for payment within 30 days of the date of the indorsement. It is unclear how the date of the indorsement is to be proven. In addition, if the indorser holds the instrument after indorsement the subsection should not apply, possibly through an estoppel. The subsection would make more sense if it allowed for 30 days after the indorsement and transfer of the instrument.

If a draft is accepted by a bank after being indorsed, the indorser is discharged, subsection (d), the same as is the drawer (84-3-414(c)).

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