(a) Subject to subsections (b), (c), and (d) and to section 490:3-419(d), if an instrument is dishonored, an indorser is obliged to pay the amount due on
the instrument (i) according to the terms of the instrument at the time it was indorsed,
or (ii) if the indorser indorsed an incomplete instrument, according to its terms
when completed, to the extent stated in sections 490:3-115 and 490:3-407. The obligation of the indorser is owed to a person entitled to enforce the instrument
or to a subsequent indorser who paid the instrument under this section.
(b) If an indorsement states that it is made “without recourse” or otherwise disclaims
liability of the indorser, the indorser is not liable under subsection (a) to pay
(c) If notice of dishonor of an instrument is required by section 490:3-503 and notice of dishonor complying with that section is not given to an indorser, the
liability of the indorser under subsection (a) is discharged.
(d) If a draft is accepted by a bank after an indorsement is made, the liability of
the indorser under subsection (a) is discharged.
(e) If an indorser of a check is liable under subsection (a) and the check is not
presented for payment, or given to a depositary bank for collection, within thirty
days after the day the indorsement was made, the liability of the indorser under subsection
(a) is discharged.
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