Code of Alabama
Ala. Code § 7-3-408 (2026)
Drawee Not Liable on Unaccepted Draft.
✓ official Alabama Legislature (ALISON) text, current July 2026
A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the drawee accepts it.
(Acts 1995, No. 95-668, p. 1381, §1.)
Notes of Decisions
Cited in 2
cases, 1981–1987 · leading case: Grant v. Southtrust Bank of Baldwin Cnty., 512 So. 2d 914 (Ala. 1987).
Grant v. Southtrust Bank of Baldwin Cnty., 512 So. 2d 914 (Ala. 1987). “Aubrey and Harris Grant (the “Grants”) argue that no consideration existed for their signing of the guaranty of payment forms, and that, in the absence of consideration, Ala.Code (1975), § 7-3-408, those guaranties may not be enforced by South-trust.”
Kayfan v. Zolali, 408 So. 2d 121 (Ala. Civ. App. 1981). “Appellee properly points out that § 7-3-408, Code (1975) governs. That section states that “[N]o consideration is necessary for an instrument or obligation thereon given in payment of or as security for an antecedent obligation of any kind.”
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