A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the drawee accepts it.
(1959, P.A. 133, S. 3-408; P.A. 91-304, S. 45.)
History: P.A. 91-304 entirely replaced former provisions re lack or failure of consideration with provisions re liability of a drawee on unaccepted draft, a restatement of Sec. 42a-3-409(1), revised to 1991.
See Sec. 42a-3-303(b) for successor provisions to Sec. 42a-3-408, revised to 1991, re consideration.
Instrument negotiable in form is deemed prima facie issued for valuable consideration and burden of proving absence or failure of same is on defendant. 149 C. 558. Cited. 151 C. 566. Party asserting lack of consideration has burden of establishing it by preponderance of the evidence. Id., 606. Cited. 240 C. 10.
Cited. 1 CA 162.
Broker is entitled to his commission when he has produced customer ready, able and willing to purchase; hence plaintiff's threat he would not go through with sale and defendant broker would lose her commission unless she signed note he is now suing her on, was no consideration for note. 4 Conn. Cir. Ct. 665.