Chapter 403

403.406   Negligence contributing to forged signature or alteration of instrument.

403.407   Alteration.

403.408   Drawee not liable on unaccepted draft.

403.409   Acceptance of draft; certified check.

403.410   Acceptance varying draft.

403.411   Refusal to pay cashier’s checks, teller’s checks and certified checks.

403.412   Obligation of issuer of note or cashier’s check.

403.413   Obligation of acceptor.

403.414   Obligation of drawer.

403.415   Obligation of endorser.

403.416   Transfer warranties.

403.417   Presentment warranties.

403.418   Payment or acceptance by mistake.

403.419   Instruments signed for accommodation.

403.420   Conversion of instrument.

SUBCHAPTER V

DISHONOR

403.501   Presentment.

403.502   Dishonor.

403.503   Notice of dishonor.

403.504   Excused presentment and notice of dishonor.

403.505   Evidence of dishonor.

SUBCHAPTER VI

DISCHARGE AND PAYMENT

403.601   Discharge and effect of discharge.

403.602   Payment.

403.603   Tender of payment.

403.604   Discharge by cancellation or renunciation.

403.605   Discharge of endorsers and accommodation parties.

subch. I of ch. 403 SUBCHAPTER I

GENERAL PROVISIONS AND DEFINITIONS

403.102 403.102 Subject matter.

403.102(1) (1) 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.

403.102(2) (2) If there is a conflict between this chapter and ch. 404 or 409, chs. 404 and 409 govern.

403.102(3) (3) 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.

403.102 History History: 1995 a. 449.

403.103 403.103 Definitions.

403.103(1) (1) In this chapter:

403.103(1)(a) (a) “Acceptor” means a drawee who has accepted a draft.

403.103(1)(b) (b) “Drawee” means a person ordered in a draft to make payment.

403.103(1)(c) (c) “Drawer” means a person who signs or is identified in a draft as a person ordering payment.

403.103(1)(d) (d) “Good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing.

403.103(1)(e) (e) “Maker” means a person who signs or is identified in a note as a person undertaking to pay.

403.103(1)(f) (f) “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.

403.103(1)(g) (g) “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.

403.103(1)(h) (h) “Party” means a party to an instrument.

403.103(1)(i) (i) “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.

403.103(1)(j) (j) “Prove” with respect to a fact means to meet the burden of establishing a fact, as defined in s. 401.201 (2) (e).

403.103(1)(k) (k) “Remitter” means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser.

403.103(2) (2) Other definitions applying to this chapter and the sections in which they appear are:

403.103(2)(ae) (ae) “Acceptance” — s. 403.409 (1).

403.103(2)(am) (am) “Accommodated party” — s. 403.419 (1).

403.103(2)(as) (as) “Accommodation party” — s. 403.419 (1).

403.103(2)(b) (b) “Alteration” — s. 403.407 (1).

403.103(2)(c) (c) “Anomalous endorsement” — s. 403.205 (4).

403.103(2)(d) (d) “Blank endorsement” — s. 403.205 (2).

403.103(2)(e) (e) “Cashier’s check” — s. 403.104 (7).

403.103(2)(fg) (fg) “Certificate of deposit” — s. 403.104 (10).

403.103(2)(fr) (fr) “Certified check” — s. 403.409 (4).

403.103(2)(g) (g) “Check” — s. 403.104 (6).

403.103(2)(h) (h) “Consideration” — s. 403.303 (2).

403.103(2)(hr) (hr) “Demand draft” — s. 403.104 (11).

403.103(2)(i) (i) “Draft” — s. 403.104 (5).

403.103(2)(jg) (jg) “Endorsement” — s. 403.204 (1).

403.103(2)(jr) (jr) “Endorser” — s. 403.204 (2).

403.103(2)(k) (k) “Holder in due course” — s. 403.302 (1).

403.103(2)(L) (L) “Incomplete instrument” — s. 403.115 (1).

403.103(2)(m) (m) “Instrument” — s. 403.104 (2).

403.103(2)(ng) (ng) “Issue” — s. 403.105 (1).

403.103(2)(nr) (nr) “Issuer” — s. 403.105 (3).

403.103(2)(og) (og) “Negotiable instrument” — s. 403.104 (1).

403.103(2)(or) (or) “Negotiation” — s. 403.201 (1).

403.103(2)(p) (p) “Note” — s. 403.104 (5).

403.103(2)(qd) (qd) “Payable at a definite time” — s. 403.108 (2).

403.103(2)(qh) (qh) “Payable on demand” — s. 403.108 (1).

403.103(2)(qp) (qp) “Payable to bearer” — s. 403.109 (1).

403.103(2)(qt) (qt) “Payable to order” — s. 403.109 (2).

403.103(2)(r) (r) “Payment” — s. 403.602 (1).

403.103(2)(s) (s) “Person entitled to enforce” — s. 403.301.

403.103(2)(t) (t) “Presentment” — s. 403.501 (1).

403.103(2)(u) (u) “Reacquisition” — s. 403.207.

403.103(2)(v) (v) “Special endorsement” — s. 403.205 (1).

403.103(2)(w) (w) “Teller’s check” — s. 403.104 (8).

403.103(2)(xg) (xg) “Transfer of instrument” — s. 403.203 (1).

403.103(2)(xr) (xr) “Traveler’s check” — s. 403.104 (9).

403.103(2)(y) (y) “Value” — s. 403.303 (1).

403.103(3) (3) The following definitions in other chapters apply to this chapter:

403.103(3)(a) (a) “Bank” — s. 404.105 (1).