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. § 3-415)
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§ 3—415. Obligation of indorser
(a) Subject to subsections (b), (c), (d), and (e) of this section and to section 3—419(d) of this title, 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 3—115 and 3—407 of this title. 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) of this
section to pay the instrument.
(c) If notice of dishonor of an instrument is required by section 3—503 of this title and notice of dishonor complying with that section is not given to an indorser, the
liability of the indorser under subsection (a) of this section is discharged.
(d) If a draft is accepted by a bank after an indorsement is made, the liability of the
indorser under subsection (a) of this section is discharged.
(e) If an indorser of a check is liable under subsection (a) of this section and the check
is not presented for payment, or given to a depositary bank for collection, within
30 days after the day the indorsement was made, the liability of the indorser under
subsection (a) of this section is discharged. (Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1, 1995.)