                                 CODE OF VIRGINIA

OBLIGATION OF DRAWER (§ 8.3A-414)

a. This section does not apply to cashier&#8217;s checks or other drafts drawn
on the drawer.

b. If an unaccepted draft is dishonored, the drawer is obliged to pay the draft
(i) according to its terms at the time it was issued or, if not issued, at the
time it first came into possession of a holder, or (ii) if the drawer signed an
incomplete instrument, according to its terms when completed, to the extent
stated in &#xA7;&#xA7; 8.3A-115 and 8.3A-407. The obligation is owed to a person
entitled to enforce the draft or to an endorser who paid the draft under &#xA7;
8.3A-415.

c. If a draft is accepted by a bank, the drawer is discharged, regardless of
when or by whom acceptance was obtained.

d. If a draft is accepted and the acceptor is not a bank, the obligation of the
drawer to pay the draft if the draft is dishonored by the acceptor is the same
as the obligation of an endorser under &#xA7; 8.3A-415 (a) and (c).

e. If a draft states that it is drawn &#8220;without recourse&#8221; or
otherwise disclaims liability of the drawer to pay the draft, the drawer is not
liable under subsection (b) to pay the draft if the draft is not a check. A
disclaimer of the liability stated in subsection (b) is not effective if the
draft is a check.

f. If (i) a check is not presented for payment or given to a depositary bank for
collection within thirty days after its date, (ii) the drawee suspends payments
after expiration of the thirty-day period without paying the check, and (iii)
because of the suspension of payments, the drawer is deprived of funds
maintained with the drawee to cover payment of the check, the drawer to the
extent deprived of funds may discharge its obligation to pay the check by
assigning to the person entitled to enforce the check the rights of the drawer
against the drawee with respect to the funds.

HISTORY: Code 1950, §§ 6-412 through 6-414, 6-471, 6-496, 6-497, 6-503, 6-505,
6-539, 6-541 through 6-543; 1964, c. 219, §§ 8.3-411, 8.3-413, 8.3-502; 1992,
c. 693.