Code of Alabama

Ala. Code § 7-3-116 (2026)

Joint and Several Liability; Contribution.

✓ official Alabama Legislature (ALISON) text, current July 2026
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(a) Except as otherwise provided in the instrument, two or more persons who have the same liability on an instrument as makers, drawers, acceptors, indorsers who indorse as joint payees, or anomalous indorsers are jointly and severally liable in the capacity in which they sign.

(b) Except as provided in Section 7-3-419(e) or by agreement of the affected parties, a party having joint and several liability who pays the instrument is entitled to receive from any party having the same joint and several liability contribution in accordance with applicable law.

(c) Discharge of one party having joint and several liability by a person entitled to enforce the instrument does not affect the right under subsection (b) of a party having the same joint and several liability to receive contribution from the party discharged.

(Acts 1995, No. 95-668, p. 1381, §1.)

Notes of Decisions
Cited in 3 cases, 1985–2014 · leading case: Merchants Bank v. Head, 161 So. 3d 1151 (Ala. 2014).
Merchants Bank v. Head, 161 So. 3d 1151 (Ala. 2014). “” § 7-3-116(a), Ala.Code 1975. See also Elrod v.”
Walker v. Cmty. Bank, 596 So. 2d 886 (Ala. 1992). “Section 7-3-116(b), Code of Alabama 1975, states: “An instrument payable to the order of two or more persons: [[Image here]] “(b) If not in the alternative is payable to all of them and may be negotiated, discharged or enforced only by all of them.”
Cartwright v. State, 482 So. 2d 1306 (Ala. Crim. App. 1985). “Appellant’s attorney relies upon the Uniform Commercial Code, § 7-3-116, which provides: *1311 “An instrument payable to the order of two or more persons: “(a) If in the alternative is payable to any one of them and may be negotiated, discharged or enforced by any of them who…”
— Ala. Code § 7-3-116(a) — 1 case
Merchants Bank v. Head, 161 So. 3d 1151 (Ala. 2014). “” § 7-3-116(a), Ala.Code 1975. See also Elrod v.”
— Ala. Code § 7-3-116(b) — 1 case
Walker v. Cmty. Bank, 596 So. 2d 886 (Ala. 1992). “Section 7-3-116(b), Code of Alabama 1975, states: “An instrument payable to the order of two or more persons: [[Image here]] “(b) If not in the alternative is payable to all of them and may be negotiated, discharged or enforced only by all of them.”
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