Nebraska Uniform Commercial Code 3-105

UCC 3-105

3-105.

Issue of instrument.

(a) "Issue" means the first delivery of an instrument by the maker or drawer, whether to a holder or nonholder, for the purpose of giving rights on the instrument to any person.

(b) An unissued instrument, or an unissued incomplete instrument that is completed, is binding on the maker or drawer, but nonissuance is a defense. An instrument that is conditionally issued or is issued for a special purpose is binding on the maker or drawer, but failure of the condition or special purpose to be fulfilled is a defense.

(c) "Issuer" applies to issued and unissued instruments and means a maker or drawer of an instrument.

Source

  • Laws 1991, LB 161, § 9.

Annotations

  • Under former section 3-102, issue means the first delivery of an instrument to a holder or a remitter. State of Kansas v. Holeb, 188 Neb. 319, 196 N.W.2d 387 (1972).

  • COMMENT

  • 1. Under former section 3-102(1)(a) "issue" was defined as the first delivery to a "holder or a remitter" but the term "remitter" was neither defined nor otherwise used. In revised article 3, section 3-105(a) defines "issue" more broadly to include the first delivery to anyone by the drawer or maker for the purpose of giving rights to anyone on the instrument. "Delivery" with respect to instruments is defined in section 1-201(14) as meaning "voluntary transfer of possession".

  • 2. Subsection (b) continues the rule that nonissuance, conditional issuance, or issuance for a special purpose is a defense of the maker or drawer of an instrument. Thus, the defense can be asserted against a person other than a holder in due course. The same rule applies to nonissuance of an incomplete instrument later completed.

  • 3. Subsection (c) defines "issuer" to include the signer of an unissued instrument for convenience of reference in the statute.