Issue (Banking) Law and Legal Definition
Pursuant to U.C.C. § 3-105, issue means the first delivery of an instrument by the maker or drawer. Issue can be to a holder or non holder. The purpose is to give rights on the instrument to that person. Issuer is the maker or drawer of an instrument.
An unissued instrument or an unissued incomplete instrument that is completed, is binding on the maker or drawer. An instrument that is conditionally issued or is issued for a special purpose is binding on the maker or drawer. However, non issuance is a defense. The failure of the condition or special purpose to be fulfilled is also a defense.
Legal Definition list
Related Legal Terms
- Abstraction [Banking]
- Accommodation Maker(Banking)
- Account [Banks & Banking]
- Acting in Concert [Banks & Banking]
- Affiliate [Banks & Banking]
- Alternative Mortgage Transaction [Banks & Banking]
- Application for a Deposit Facility [Banks & Banking]
- Application for a Reissue Patent
- Appropriate Federal Banking Agency
- Appropriate Federal Financial Supervisory Agency [Banks & Banking]