United States — Louisiana Statutes

RS 10:3-403

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An unauthorized signature is generally ineffective, with limited exceptions, and it may be ratified.

RS 10:3-404

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This section sets rules for impostor and fictitious payee situations involving instruments, including when an indorsement is effective and when a person in possession is treated as the holder.

• Endorsement
• Fraud
• Payment instruments

RS 10:3-405

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An employer may be responsible when an employee with responsibility for an instrument makes a fraudulent indorsement, and a person paying or taking the instrument must exercise ordinary care.

• Employer responsibility
• Fraudulent indorsement
• Payment instruments

RS 10:3-406

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If a person’s lack of ordinary care substantially caused a forged signature or alteration, that person cannot assert the forgery or alteration against a good-faith payer or taker.

RS 10:3-407

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This section defines “alteration” and says a fraudulently made alteration can discharge the affected party unless they assent or are precluded from objecting.

• Alteration
• Instruments
• Obligation discharge

RS 10:3-408

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A check or draft does not itself transfer the drawee’s funds, and the drawee is not liable on it until the drawee accepts it.

RS 10:3-409

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This section defines acceptance of a draft and certified checks, says acceptance must be written on the draft, and lets the holder fill in a missing date in one situation.

• Certified checks
• Draft acceptance

RS 10:3-410

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If an acceptance changes the draft’s terms, the holder may refuse it and treat the draft as dishonored; the drawee may then cancel the acceptance.

• Acceptance
• Dishonor
• Drafts

RS 10:3-411

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If an obligated bank wrongly refuses to pay certain checks, the person entitled to enforce the check can recover expenses, lost interest, and sometimes consequential damages.

• Banking
• Check payment
• Nonpayment remedies

RS 10:3-412

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The issuer of a note, cashier’s check, or similar draft must pay the instrument under its terms, subject to the stated timing and incomplete-instrument rules.

• Negotiable instruments
• Payment obligations

RS 10:3-413

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An acceptor of a draft must pay it under the terms that apply at acceptance, or under any varied or completed terms when those apply.

• Acceptance
• Drafts
• Payment obligation

RS 10:3-414

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The drawer must pay a dishonored unaccepted draft, subject to stated exceptions and special rules for checks and bank acceptance.

• Checks
• Drafts
• Payment obligations

RS 10:3-415

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An indorser must pay a dishonored instrument, unless a listed exception applies.

• Endorsement liability
• Negotiable instruments
• Payment obligation

RS 10:3-416

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A person who transfers an instrument for consideration gives warranties about enforceability, signatures, alteration, defenses, and insolvency knowledge; the warranties cannot be disclaimed for checks.

• Damages
• Negotiable instruments
• Notice
• Warranties

RS 10:3-417

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This section makes people who obtain payment or transfer a draft give presentment warranties, lets a drawee or acceptor recover for breach, and sets notice and disclaimer rules.

• Drafts
• Payment
• Warranties

RS 10:3-418

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If a draft or other instrument was paid or accepted by mistake, the payer or drawee may recover the payment or revoke the acceptance, subject to a good-faith/value exception.

• Dishonor
• Mistaken acceptance
• Payment recovery

RS 10:3-419

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An accommodation party may sign an instrument and generally must pay it in the capacity signed; if the party pays, it can seek reimbursement and related remedies from the accommodated party.

• Payment obligation
• Reimbursement
• Suretyship

RS 10:3-420

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This section defines when an instrument is converted, limits who may sue for conversion, sets the measure of liability, and gives a one-year prescription period.

• Conversion liability
• Limitations period
• Negotiable instruments

RS 10:3-501

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This section defines presentment and sets rules for how it can be made, what the presenter must do on demand, and when the receiving party may treat it as occurring the next business day.

• Instrument dishonor
• Payment demand
• Presentment

RS 10:3-502

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This section says when a note, draft, or check is treated as dishonored, mainly based on presentment, payment, and acceptance timing.

• Acceptance
• Checks
• Dishonor
• Drafts
• Notes