On drafts and checks, a drawer's secondary liability does not arise until the drawer fails to pay or to accept the instrument.

Name: On drafts and checks, a drawer's secondary liability does not arise until the drawer fails to pay or to accept the instrument.
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Question

Quizplus · Accepted Answer

This statement is true. The drawer of a draft or check is primarily responsible for payment or acceptance, and if they fail to do so, their secondary liability only arises at that point.

On Drafts and Checks, a Drawer's Secondary Liability Does Not