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Minnesota Uniform Commercial Code Provisions Regarding Other Negotiable Instruments and Bank Practices, Checks, Drafts, and Letters of Credit - Chapter 64 - Advising Minnesota Corporations and Other Business Organizations - 2nd Edition
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Originally from: Advising Minnesota Corporations and Other Business Organizations - 2nd Edition - Hardcover Advising Minnesota Corporations and Other Business Organizations - 2nd Edition - Electronic
Preview Page CHAPTER 64
MINNESOTA UNIFORM COMMERCIAL
CODE PROVISIONS REGARDING OTHER
NEGOTIABLE INSTRUMENTS AND BANK
PRACTICES, CHECKS, DRAFTS, AND
LETTERS OF CREDIT
Section
§ 64.01 Negotiable Instruments Generally
§ 64.02 Checks
§ 64.03 Drafts
§ 64.01 Negotiable Instruments Generally
In order to be a negotiable instrument under the Uniform Commercial
Code, the instrument must: (1) be signed by the maker or drawer; (2)
contain an unconditional promise or order to pay a sum certain in money
and no other promise, order, obligation, or power given by the maker or
drawer except as authorized by the UCC; (3) be payable on demand or at
a definite time; and (4) be payable to order or to bearer.1 The instrument must include a person's signature for that person to be
liable for that instrument.2 The signature may be made by an authorized
agent of the person represented.3 The agent's status as authorized agent
must be clearly indicated on the instrument, or the agent may be held to
be personally liable.4
§ 64.02 Checks
A check is defined by the Uniform Commercial Code as a cashier's
check, a teller's check, or any other draft, other than a documentary draft,
payable on demand and drawn on a bank.5 A check is an order to a
drawee to pay an amount on demand and a promise by the drawer to pay
the amount if the bank refuses to pay the amount of the check, but it does
not vest title in the payee to the funds.6 A check does not operate as an
assignment of any funds in the hands of the drawee, and the drawee is
not liable for the check until he or she accepts it.7 However, Minnesota
courts have held that a check, under appropriate surrounding
circumstances, can amount to an assignment of funds.8
Roger J. Magnuson is a Partner at Dorsey and Whitney, LLP, where he serves as Head of the National Strategic Litigation Group and has practiced since 1973. He has been recognized as one of the top trial lawyers in the United States by major national and international publications, including Chambers International Guide to American Lawyers, which profiles the top 500 trial lawyers in the United States, Best Lawyers in America, Who's Who in American Law, and Who's Who in America. Mr. Magnuson was also recognized by a Journal of Law and Politics' survey for Judge's Choice "Wins Most Cases."
Some high profile cases that he has litigated include representation of the Florida Senate in the Bush v. Gore election controversy in 2000; and representation of the Plaintiffs in the widely publicized and studied Mall of America case. For several years he has represented, among other persons and entities, the Minnesota Twins and Major League Baseball principals and players in litigation; and has litigated national and local cases in federal and state court venues. He has appealed before the Supreme Court in a number of cases; as well as the Minnesota Supreme Court. He has authored several articles and 7 books.
Richard A. Saliterman is a Principal in Saliternan & Siefferman P.C., a full-service firm in Minneapolis established in 1976. Mr. Saliterman is a leading expert on corporate business matters, and is the author of several publications on business start-ups, franchises, and trademarks. Mr. Saliterman is the former National Judge Advocate for the U.S. Navy League, based in Washington D.C.
Contributing Editor:
Amanda Chang
Contributing Authors:
Alecia Anderson
Seth Back
John Baker
Shannon Berg
Constatin Burachek
Benjamin Carpenter
Ryan Check
Carl Christensen
Peter Fear
Michael Frasier
Aaron Hall
Catherine Hanson
Paul Harman
Amy Ithlan
Michael Kern
Chris Kuhlman
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