J. MILLARD TAWES, Governor                        847

3—409. Draft Not an Assignment.

(1)  A check or other draft does not of itself operate as an assign-
ment of any funds in the hands of the drawee available for its pay-
ment, and the drawee is not liable on the instrument until he accepts
it.

(2)  Nothing in this section shall affect any liability in contract,
tort or otherwise arising from any letter of credit or other obliga-
tion or representation which is not an acceptance.

3—410. Definition and Operation of Acceptance.

(1)  Acceptance is the drawee's signed engagement to honor the
draft as presented. It must be written on the draft, and may consist
of his signature alone. It becomes operative when completed by
delivery or notification.

(2)  A draft may be accepted although it has not been signed by
the drawer or is otherwise incomplete or is overdue or has been
dishonored.

(3)   Where the draft is payable at a fixed period after sight and
the acceptor fails to date his acceptance the holder may complete it
by supplying a date in good faith.

3—411. Certification of a Check.

(1)  Certification of a check is acceptance. Where a holder pro-
cures certification the drawer and all prior indorsers are discharged.

(2)   Unless otherwise agreed a bank has no obligation to certify
a check.

(3)  A bank may certify a check before returning it for lack of
proper indorsement. If it does so the drawer is discharged.

3—412. Acceptance Varying Draft.

(1)  Where the drawee's proffered acceptance in any manner varies
the draft as presented the holder may refuse the acceptance and treat
the daft as dishonored in which case the drawee is entitled to have
his acceptance cancelled.

(2)   The terms of the draft are not varied by an acceptance to pay
at any particular bank or place in the United States, unless the
acceptance states that the draft is to be paid only at such bank or
place.

(3)   Where the holder assents to an acceptance varying the terms
of the draft each drawer and indorser who does not affirmatively
assent is discharged.

3—413. Contract of Maker, Drawer and Acceptor.

(1)  The maker or acceptor engages that he will pay the instru-
ment according to its tenor at the time of his engagement or as com-
pleted pursuant to Section 3—115 on incomplete instruments.

(2)  The drawer engages that upon dishonor of the draft and any
necessary notice of dishonor or protest he will pay the amount of
the draft to the holder or to any indorser who takes it up. The
drawer may disclaim this liability by drawing without recourse.