N.Y. Uniform Commercial Code 3-409 – Draft Not an Assignment
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Section 3–409. Draft Not an Assignment.
Terms Used In N.Y. Uniform Commercial Code 3-409
- Contract: A legal written agreement that becomes binding when signed.
- Instrument: means a negotiable instrument. See N.Y. Uniform Commercial Code 3-102
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
(1) A check or other draft does not of itself operate as an assignment of any funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until he accepts it.
(2) Nothing in this section shall affect any liability in contract, tort or otherwise arising from any letter of credit or other obligation or representation which is not an acceptance.