KRS 355.3-415: Obligation of indorser.

(1) Subject to subsections (2), (3), (4), and (5) of this section and to KRS 355.3 -419(4),

if an instrument is dishonored, an indorser is obliged to pay the amount due on the

instrument:

(a) According to the terms of the instrument at the time it was indorsed; or

(b) If the indorser indorsed an incomplete instrument, according to its terms when

completed, to the extent stated in KRS 355.3-115 and 355.3-407.

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.

(2) If an indorsement states that it is made "without recourse" or otherwise disclaims

liability of the indorser, the indorser is not liable under subsection (1) of this section

to pay the instrument.

(3) If notice of dishonor of an instrument is required by KRS 355.3 -503 and notice of

dishonor complying with that section is not given to an indorser, the liability of the

indorser under subsection (1) of this section is discharged.

(4) If a draft is accep ted by a bank after an indorsement is made, the liability of the

indorser under subsection (1) of this section is discharged.

(5) If an indorser of a check is liable under subsection (1) of this section and the check

is not presented for payment, or given to a depositary bank for collection, within

thirty (30) days after the day the indorsement was made, the liability of the indorser

under subsection (1) of this section is discharged.