North Dakota Code 41-03-52 – (3-415) Obligation of endorser
1. Subject to subsections 2, 3, and 4 and to subsection 4 of section 41-03-56, if an instrument is dishonored, an endorser is obliged to pay the amount due on the instrument according to the terms of the instrument at the time it was endorsed or, if the endorser endorsed an incomplete instrument, according to its terms when completed as stated in sections 41-03-15 and 41-03-44. The obligation of the endorser is owed to a person entitled to enforce the instrument or to a subsequent endorser that paid the instrument pursuant to this section.
Terms Used In North Dakota Code 41-03-52
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49
2. If an endorsement states that it is made “without recourse” or otherwise disclaims liability of the endorser, the endorser is not liable under subsection 1 to pay the instrument.
3. If notice of dishonor of an instrument is required by section 41-03-60 and notice of dishonor complying with that section is not given to an endorser, the liability of the endorser under subsection 1 is discharged.
4. If a draft is accepted by a bank after an endorsement is made, the liability of the endorser under subsection 1 is discharged.
5. If an endorser of a check is liable under subsection 1 and the check is not presented for payment or given to a depositary bank for collection within thirty days after the day the endorsement was made, the liability of the endorser under subsection 1 is discharged.