(1) Subject to subsections (2), (3), (4), and (5) of this section and to KRS 355.3-419(4), if an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument:
(a) According to the terms of the instrument at the time it was indorsed; or
(b) If the indorser indorsed an incomplete instrument, according to its terms when completed, to the extent stated in KRS 355.3-115 and 355.3-407. 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.
(2) If an indorsement states that it is made "without recourse" or otherwise disclaims liability of the indorser, the indorser is not liable under subsection (1) of this section to pay the instrument.
(3) If notice of dishonor of an instrument is required by KRS 355.3-503 and notice of dishonor complying with that section is not given to an indorser, the liability of the indorser under subsection (1) of this section is discharged.
(4) If a draft is accepted by a bank after an indorsement is made, the liability of the indorser under subsection (1) of this section is discharged.
(5) If an indorser of a check is liable under subsection (1) of this section 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 (1) of this section is discharged. Effective: January 1, 1997 History: Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 53, effective January 1, 1997. -- Created 1958 Ky. Acts ch. 77, sec. 3-415, effective July 1, 1960.
Notes of Decisions
Schmuckie v. Alvey, 758 S.W.2d 31 (Ky. 1988).
· cites it 6× “Under KRS 355.3-415, an accommodation party does not lose his status as such even though he executes the instrument as a maker.”
Am. Fid. Bank & Trust Co. v. Hinkle, 747 S.W.2d 620 (Ky. Ct. App. 1988).
· cites it 3× “For the purposes of this appeal, it does not matter whether the appellee acted as co-maker, accommodation party or surety, because his liability vis-a-vis the bank is the same.”
Ramsey v. First Nat'l Bank & Trust Co. of Corbin, 683 S.W.2d 947 (Ky. Ct. App. 1984).
“Adamson was thus determined to fit the classic definition of an accommodation maker found in section 3-415 of the Uniform Commercial Code and codified in our own statutes at KRS 355.3-415(1), An accommodation party is one who signs the instrument in any capacity for the purpose…”
Nunnelley v. Herndon, 685 S.W.2d 206 (Ky. Ct. App. 1985).
“An accommodation party is defined in KRS 355.3-415(1) as “... one who signs the instrument in any capacity for the purpose of lending his name to another party to it.”
Chapman Drug Co. v. Green, 685 S.W.2d 204 (Ky. Ct. App. 1984).
· cites it 2× “KRS 355.3-415(2). Here, it is undisputed that Green indorsed the back of the note outside the chain of title for the purpose of accommodating his corporation.”
— Ky. Rev. Stat. § 355.3-415(1) — 3 cases
Ramsey v. First Nat'l Bank & Trust Co. of Corbin, 683 S.W.2d 947 (Ky. Ct. App. 1984).
“Adamson was thus determined to fit the classic definition of an accommodation maker found in section 3-415 of the Uniform Commercial Code and codified in our own statutes at KRS 355.3-415(1), An accommodation party is one who signs the instrument in any capacity for the purpose…”
Am. Fid. Bank & Trust Co. v. Hinkle, 747 S.W.2d 620 (Ky. Ct. App. 1988).
“For the purposes of this appeal, it does not matter whether the appellee acted as co-maker, accommodation party or surety, because his liability vis-a-vis the bank is the same.”
Nunnelley v. Herndon, 685 S.W.2d 206 (Ky. Ct. App. 1985).
“An accommodation party is defined in KRS 355.3-415(1) as “... one who signs the instrument in any capacity for the purpose of lending his name to another party to it.”
— Ky. Rev. Stat. § 355.3-415(2) — 2 cases
Chapman Drug Co. v. Green, 685 S.W.2d 204 (Ky. Ct. App. 1984).
“KRS 355.3-415(2). Here, it is undisputed that Green indorsed the back of the note outside the chain of title for the purpose of accommodating his corporation.”
— Ky. Rev. Stat. § 355.3-415(3) — 1 case
Schmuckie v. Alvey, 758 S.W.2d 31 (Ky. 1988).
“Under KRS 355.3-415, an accommodation party does not lose his status as such even though he executes the instrument as a maker.”
— Ky. Rev. Stat. § 355.3-415(4) — 1 case
Chapman Drug Co. v. Green, 685 S.W.2d 204 (Ky. Ct. App. 1984).
“KRS 355.3-415(2). Here, it is undisputed that Green indorsed the back of the note outside the chain of title for the purpose of accommodating his corporation.”
— Ky. Rev. Stat. § 355.3-415(5) — 1 case
Am. Fid. Bank & Trust Co. v. Hinkle, 747 S.W.2d 620 (Ky. Ct. App. 1988).
“For the purposes of this appeal, it does not matter whether the appellee acted as co-maker, accommodation party or surety, because his liability vis-a-vis the bank is the same.”
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