{"data":{"id":"us-ky/krs-355.3-414","jurisdiction":"us-ky","citation":"KRS 355.3-414","heading":"Obligation of drawer.","body":"(1) This section does not apply to cashier's checks or other drafts drawn on the drawer.\n(2) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft:\n(a) According to its terms at the time it was issued or, if not issued, at the time it\nfirst came into possession of a holder; or\n(b) If the drawer signed an incomplete instrument, according to its terms when\ncompleted, to the extent stated in KRS 355.3-115 and 355.3-407.\nThe obligation is owed to a person entitled to enforce the draft or to an indorser who\npaid the draft under KRS 355.3-415.\n(3) If a draft is accepted by a bank, the drawer is discharged, regardless of when or by\nwhom acceptance was obtained.\n(4) If a draft is accepted and the acceptor is not a bank, the obligation of the draw er to\npay the draft if the draft is dishonored by the acceptor is the same as the obligation\nof an indorser under KRS 355.3-415(1) and (3).\n(5) If a draft states that it is drawn \"without recourse\" or otherwise disclaims liability of\nthe drawer to pay the draft, the drawer is not liable under subsection (2) of this\nsection to pay the draft if the draft is not a check. A disclaimer of the liability stated\nin subsection (2) of this section is not effective if the draft is a check.\n(6) If:\n(a) A check is not p resented for payment or given to a depositary bank for\ncollection within thirty (30) days after its date;\n(b) The drawee suspends payments after expiration of the thirty (30) day period\nwithout paying the check; and\n(c) Because of the suspension of payment s, the drawer is deprived of funds\nmaintained with the drawee to cover payment of the check,\nthe drawer to the extent deprived of funds may discharge its obligation to pay the\ncheck by assigning to the person entitled to enforce the check the rights of th e\ndrawer against the drawee with respect to the funds.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33484","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:44Z","sha256":"a7f55b4f1819f1b15150ea3aa1476e74fdd564640a27642ad0636a6bd1a822d0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.3-413","next":"us-ky/krs-355.3-415"},"notice":"GroundRules: Original legal text. Not legal advice."}