Originally from:
Advising Minnesota Corporations and Other Business Organizations - 2nd Edition - Hardcover
Advising Minnesota Corporations and Other Business Organizations - 2nd Edition - Electronic
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CHAPTER 64
MINNESOTA UNIFORM COMMERCIAL
CODE PROVISIONS REGARDING OTHER
NEGOTIABLE INSTRUMENTS AND BANK
PRACTICES, CHECKS, DRAFTS, AND
LETTERS OF CREDIT
Section
§ 64.01 Negotiable Instruments Generally
§ 64.02 Checks
§ 64.03 Drafts
§ 64.01 Negotiable Instruments Generally
In order to be a negotiable instrument under the Uniform Commercial
Code, the instrument must: (1) be signed by the maker or drawer; (2)
contain an unconditional promise or order to pay a sum certain in money
and no other promise, order, obligation, or power given by the maker or
drawer except as authorized by the UCC; (3) be payable on demand or at
a definite time; and (4) be payable to order or to bearer.1
The instrument must include a person's signature for that person to be
liable for that instrument.2 The signature may be made by an authorized
agent of the person represented.3 The agent's status as authorized agent
must be clearly indicated on the instrument, or the agent may be held to
be personally liable.4
§ 64.02 Checks
A check is defined by the Uniform Commercial Code as a cashier's
check, a teller's check, or any other draft, other than a documentary draft,
payable on demand and drawn on a bank.5 A check is an order to a
drawee to pay an amount on demand and a promise by the drawer to pay
the amount if the bank refuses to pay the amount of the check, but it does
not vest title in the payee to the funds.6 A check does not operate as an
assignment of any funds in the hands of the drawee, and the drawee is
not liable for the check until he or she accepts it.7 However, Minnesota
courts have held that a check, under appropriate surrounding
circumstances, can amount to an assignment of funds.8
Chapter 64 Minnesota Uniform Commercial Code Provisions
Regarding Other Negotiable Instruments and Bank
Practices, Checks, Drafts, and Letters of Credit
§ 64.01 Negotiable Instruments Generally
§ 64.02 Checks
§ 64.03 Drafts
