Endorsement Guaranteed

[David Merrill]

I gave the clerk of court the opportunity to endorse the backside. See how it bled through?

[American_National]

Sorry about the 12 or so edits to my last post David. . . I keep seeing places where additional words and rephrasing would make the post clearer for others to read. :-)

Yep, it can just be made out on the last image associated with your post above.

Did she ever post-facto endorse it, or did she persist in choosing to not be an accommodation party to the instrument?

[American_National]

David, this U.C.C. section may be helpful to you in relation to the images of your U.C.C. 3-104(b) instrument that the clerk of the court did not act to endorse . . .

Please take note of section (a)(3) below related to an undertaking or power to give, maintain, or protect "collaterial" to secure payment + the authorization or power part to the holder to "CONFESS" judgment or realize on or dispose of collateral . . . .



(a) Except as provided in subsections (c) and (d), "negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it:

(1) is payable to bearer or to order at the time it is issued or first comes into possession of a holder;
(2) is payable on demand or at a definite time; and
(3) does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain (i) an undertaking or power to give, maintain, or protect collateral to secure payment, (ii) an authorization or power to the holder to confess judgment or realize on or dispose of collateral, or (iii) a waiver of the benefit of any law intended for the advantage or protection of an obligor.

(b) "Instrument" means a negotiable instrument.

(c) An order that meets all of the requirements of subsection (a), except paragraph (1), and otherwise falls within the definition of "check" in subsection (f) is a negotiable instrument and a check.

(d) A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this Article.

(e) An instrument is a "note" if it is a promise and is a "draft" if it is an order. If an instrument falls within the definition of both "note" and "draft," a person entitled to enforce the instrument may treat it as either.

(f) "Check" means (i) a draft, other than a documentary draft, payable on demand and drawn on a bank or (ii) a cashier's check or teller's check. An instrument may be a check even though it is described on its face by another term, such as "money order."

(g) "Cashier's check" means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.

(h) "Teller's check" means a draft drawn by a bank (i) on another bank, or (ii) payable at or through a bank.

(i) "Traveler's check" means an instrument that (i) is payable on demand, (ii) is drawn on or payable at or through a bank, (iii) is designated by the term "traveler's check" or by a substantially similar term, and (iv) requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument.

(j) "Certificate of deposit" means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.

In another thread a couple of days back, we were discussing with doug555 about the addition of words on the face of the check/draft to evidence the maker's non-accommodation status and demand for lawful money use in all transactions.

The highlighted parts of Section (a) above may also impact what can actually be placed on the face of such checks/drafts and subsequently accepted by the banks as them still being an "unconditional" promise to pay . . .

From the above, it appears to me that through this UCC, the financial institutions have secured their right to presumptively require accommodation/surety status from the party transacting the check/draft. . .

Interesting . . . . eh?