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HomeCommercial CodeDiv. 3Ch. 4§ 3413 Acceptor'S Payment Obligation

§ 3413 Acceptor'S Payment Obligation

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 3413 Acceptor'S Payment Obligation

This law says that when someone accepts a draft (like a check), they have to pay it the way the draft says, even if the acceptance changes the terms or the draft was unfinished, and the amount they owe is the amount written or, if not written, the amount when a holder in due course receives it.

Key Takeaways

  • •The acceptor must pay the draft according to its terms at the time of acceptance.
  • •If the acceptance changes the draft’s terms, the acceptor pays the new terms.
  • •If the draft was incomplete, the acceptor pays once it’s finished, as described in other sections.
  • •The amount owed is the amount written on the draft; if no amount is written and the amount later changes, the acceptor owes the amount that was on the draft when a holder in due course got it.

Example

Alice writes a $100 check to Bob. Bob signs it over to Carol, who accepts the check and writes "payable as originally drawn" on her acceptance. Later, the check is altered to $150 and given to Dave, who is a holder in due course.

Because Carol accepted the check, she must pay the amount the check said when she accepted it – $100 – even though the acceptance said "as originally drawn". When the check was later changed to $150 and given to Dave, Carol’s obligation stays at $100, and Dave can only claim the $150 amount that was on the check when he received it.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 3413 Acceptor'S Payment Obligation

(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 Sections 3115 and 3407. The obligation is owed to a person entitled to enforce the draft or to the drawer or an indorser who paid the draft under Section 3414 or 3415. (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. (Repealed and added by Stats. 1992, Ch. 914, Sec. 6. Effective January 1, 1993.)

Last verified: January 10, 2026

Key Terms

acceptordraftas originally drawnincomplete instrumentholder in due course

Related Statutes

  • § 3402 Representative Signature Liability
  • § 3407 Fraudulent Instrument Alterations
  • § 3408 Check Not Funds Assignment
  • § 3410 Draft Acceptance Terms
  • § 3412 Issuer Obligation To Pay

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 3413.
View Official Source