Notice of dishonor.
Excused presentment and notice of dishonor.
Evidence of dishonor.
DISCHARGE AND PAYMENT
Discharge and effect of discharge.
Tender of payment.
Discharge by cancellation or renunciation.
Discharge of endorsers and accommodation parties.
GENERAL PROVISIONS AND DEFINITIONS
This chapter applies to negotiable instruments. It does not apply to money, to payment orders governed by ch. 410
or to securities governed by ch. 408
Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of this chapter to the extent of the inconsistency.
History: 1995 a. 449
“Acceptor" means a drawee who has accepted a draft.
“Drawee" means a person ordered in a draft to make payment.
“Drawer" means a person who signs or is identified in a draft as a person ordering payment.
“Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
“Maker" means a person who signs or is identified in a note as a person undertaking to pay.
“Order" means a written instruction to pay money signed by the person giving the instruction. The instruction may be addressed to any person, including the person giving the instruction, or to one or more persons jointly or in the alternative but not in succession. An authorization to pay is not an order unless the person authorized to pay is also instructed to pay.
“Ordinary care" in the case of a person engaged in business means observance of reasonable commercial standards, prevailing in the area in which the person is located, with respect to the business in which the person is engaged. In the case of a bank that takes an instrument for processing for collection or payment by automated means, reasonable commercial standards do not require the bank to examine the instrument if the failure to examine does not violate the bank's prescribed procedures and the bank's procedures do not vary unreasonably from general banking usage not disapproved by this chapter or ch. 404
“Promise" means a written undertaking to pay money signed by the person undertaking to pay. An acknowledgment of an obligation by the obligor is not a promise unless the obligor also undertakes to pay the obligation.
“Remitter" means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser.
Other definitions applying to this chapter and the sections in which they appear are:
The following definitions in other chapters apply to this chapter:
In addition, ch. 401
contains general definitions and principles of construction and interpretation applicable throughout this chapter.
Negotiable instrument. 403.104(1)(1)
Except as provided in subs. (3)
, “negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if all of the following apply:
It is payable to bearer or to order at the time that it is issued or first comes into possession of a holder.
It does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain any of the following:
An undertaking or power to give, maintain or protect collateral to secure payment.
An authorization or power to the holder to confess judgment or realize on or dispose of collateral.