Liability on the Negotiable Instrument The Person Entitled to Enforce o At the very minimum, the person seeking to enforce

the instrument must have actual physical possession of it and be able to produce it in court. Enforcement Against Whom 1) Establish that a person qualifies as a person entitled to enforce the instrument o No person can be held to obligation on an instrument unless that persons signature appears on the instrument itself. o Acceptor of a Draft If the draft is presented to the drawee who then accepts the draft, the drawee will by that act become the acceptor of the draft and will committed himself to liability of the draft. Examples o Once a drawee signs their name to an instrument they have accepted it If the money is not due it would be a presentment for acceptance rather than presentment for immediate payment o The drawer by his or her will alone cannot obligate the drawee to do anything. It is the drawees acceptance that obligates him on the draft, not the creation of the draft that obligates payment o 3-414 Drawer is liable as the drawer of an unaccepted draft. Someone can also sue the drawer directly on the contract for services that she initially entered into with him. o 3-408 A check or other draft does not 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 o 3-414 If a check is dishonored, the drawer is obligated to pay the draft according to its terms at the time it was issued. The obligation is owed to a PEEI. o 3-415 The obligation of an indorser to pay on an instrument. If presentment is required than the holder would first have to formally present the note to the drawer and demand payment. Then she could go to the indorser If payment is not made when due and presentment is waived, the holder can proceed against indorsers when payment is not received.