The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 3-414)
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§ 3—414. Obligation of drawer
(a) This section does not apply to cashier’s checks or other drafts drawn on the drawer.
(b) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft (i) 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 (ii) if the drawer signed an incomplete instrument,
according to its terms when completed, to the extent stated in sections 3—115 and 3—407 of this title. The obligation is owed to a person entitled to enforce the draft or to an indorser
who paid the draft under section 3—415 of this title.
(c) If a draft is accepted by a bank, the drawer is discharged, regardless of when or
by whom acceptance was obtained.
(d) 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 indorser under section 3—415(a) and (c) of this title.
(e) 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 subsection (b) of this
section to pay the draft if the draft is not a check. A disclaimer of the liability
stated in subsection (b) of this section is not effective if the draft is a check.
(f) If (i) a check is not presented for payment or given to a depositary bank for collection
within 30 days after its date, (ii) the drawee suspends payments after expiration
of the 30-day period without paying the check, and (iii) 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. (Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1, 1995.)