Arkansas Code Annotated
Ark. Code Ann. § 4-3-415 (2026)
Obligation of indorser
✓ current as of May 2026
- Subject to subsections (b), (c), and (d) and to § 4-3-419(d), if an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument (i) according to the terms of the instrument at the time it was indorsed, or (ii) if the indorser indorsed an incomplete instrument, according to its terms when completed, to the extent stated in §§ 4-3-115 and 4-3-407. The obligation of the indorser is owed to a person entitled to enforce the instrument or to a subsequent indorser who paid the instrument under this section.
- If an indorsement states that it is made “without recourse” or otherwise disclaims liability of the indorser, the indorser is not liable under subsection (a) to pay the instrument.
- If notice of dishonor of an instrument is required by § 4-3-503 and notice of dishonor complying with that section is not given to an indorser, the liability of the indorser under subsection (a) is discharged.
- If a draft is accepted by a bank after an indorsement is made, the liability of the indorser under subsection (a) is discharged.
- If an indorser of a check is liable under subsection (a) and the check is not presented for payment, or given to a depositary bank for collection, within thirty (30) days after the day the indorsement was made, the liability of the indorser under subsection (a) is discharged.
History. Acts 1991, No. 572, § 5.
Research References
Ark. L. Rev.
Bills and Notes — Qualified Indorsements, 18 Ark. L. Rev. 167.
Case Notes
Liability.
Company was liable as an endorser where it gave a bondsman actual authority to endorse its name on a check; it was irrelevant that the bondsman later misappropriated the funds. Holt Bonding Co. v. First Fed. Bank, 82 Ark. App. 8, 110 S.W.3d 298 (2003).
Notes of Decisions
Cited in 4
cases, 1988–2003 · leading case: Camp v. First Fin. Fed. Sav. & Loan Ass'n, 772 S.W.2d 602 (Ark. 1989).
Camp v. First Fin. Fed. Sav. & Loan Ass'n, 772 S.W.2d 602 (Ark. 1989). “” Thus, an accommodation party may appear on the instrument as a co-maker. See J. White and R. Summers, Uniform Commercial Code, % 13-12, at 516 (2d ed.”
Holt Bonding Co. v. First Fed. Bank of Arkansas, 110 S.W.3d 298 (Ark. Ct. App. 2003). “Following discovery, First Federal filed a motion for summary judgment, arguing that, as a matter of law, Van Curen was Holt’s agent for the purpose of endorsing the $24,000 check and, when he endorsed Holt’s name, Holt became liable as an endorser under the provision of the…”
Mobley v. Harmon, 803 S.W.2d 900 (Ark. 1991). “See Ark. Code Ann. § 4-3-415 (5) (1987). Mobley therefore is not suing Harmon merely in his status as note holder, but is suing him under the authority of a separate Code provision which empowers him to do so.”
McIlroy Bank & Trust v. Maestri, 759 S.W.2d 808 (Ark. 1988). “Ark. Code Ann. § 4-3-415 (1987) deals with the contract of an accommodation party.”
— Ark. Code Ann. § 4-3-415(1) — 1 case
Camp v. First Fin. Fed. Sav. & Loan Ass'n, 772 S.W.2d 602 (Ark. 1989). “” Thus, an accommodation party may appear on the instrument as a co-maker. See J. White and R. Summers, Uniform Commercial Code, % 13-12, at 516 (2d ed.”
— Ark. Code Ann. § 4-3-415(5) — 1 case
Mobley v. Harmon, 803 S.W.2d 900 (Ark. 1991). “See Ark. Code Ann. § 4-3-415 (5) (1987). Mobley therefore is not suing Harmon merely in his status as note holder, but is suing him under the authority of a separate Code provision which empowers him to do so.”
— Ark. Code Ann. § 4-3-415(l)(1987) — 1 case
Camp v. First Fin. Fed. Sav. & Loan Ass'n, 772 S.W.2d 602 (Ark. 1989). “” Thus, an accommodation party may appear on the instrument as a co-maker. See J. White and R. Summers, Uniform Commercial Code, % 13-12, at 516 (2d ed.”
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