Printable Format84-3-413. Obligation of acceptor. (a) The acceptor of a draft is obliged to pay the draft (1) according to its terms at the time it was accepted, even though the acceptance states that the draft is payable "as originally drawn" or equivalent terms, (2) if the acceptance varies the terms of the draft, according to the terms of the draft as varied, or (3) if the acceptance is of a draft that is an incomplete instrument, according to its terms when completed, to the extent stated in K.S.A. 84-3-115 and 84-3-407. The obligation is owed to a person entitled to enforce the draft or to the drawer or an endorser who paid the draft under K.S.A. 84-3-414 or 84-3-415.
(b) If the certification of a check or other acceptance of a draft states the amount certified or accepted, the obligation of the acceptor is that amount. If (1) the certification or acceptance does not state an amount, (2) the amount of the instrument is subsequently raised, and (3) the instrument is then negotiated to a holder in due course, the obligation of the acceptor is the amount of the instrument at the time it was taken by the holder in due course.
History: L. 1991, ch. 296, § 50; February 1, 1992.
KANSAS COMMENT, 1996
This section is identical to the 1995 Official Text except that the lower case roman numerals have been replaced by arabic numbers. This section is derived from the former 84-3-413(1). Historical case and statutory references can be obtained from the 1965 and 1983 bound volume 7 of the Kansas Statutes Annotated.
As described in the Kansas Comment 1996 to 84-3-412, with regard to makers, this section states the basic contractual liability of an acceptor of a draft. The acceptor is obligated to pay the draft as accepted, even if it has been altered. If the acceptance varies the draft, the acceptor is obligated on the varied draft. See 84-3-410. If the accepted draft is incomplete, generally it can be enforced as completed by a person taking it for value, in good faith and without notice of the unauthorized completion.
If a check is certified or a draft is accepted for a specified amount, that amount is controlling. If the certification or acceptance does not state the amount, and the draft is later fraudulently raised, the acceptor is liable for the amount noted on the draft at the time it is taken by a holder in due course. This liability creates a great incentive for the acceptor to use an acceptance machine which indicates the amount of the acceptance, and is consistent with prior law.
Revisor's Note:
Former section 84-3-413 was repealed by L. 1991, ch. 296, § 111 and the number reassigned to the current text.