Sec. 412. The issuer of a note or cashier’s check or other draft drawn on the drawer is obliged to pay the instrument:

(1) according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder; or

Terms Used In Indiana Code 26-1-3.1-412

  • 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.
(2) if the issuer signed an incomplete instrument, according to its terms when completed, to the extent stated in IC 26-1-3.1-115 and IC 26-1-3.1-407.

The obligation is owed to a person entitled to enforce the instrument or to an endorser who paid the instrument under IC 26-1-3.1-415.

As added by P.L.222-1993, SEC.5.