1. (a) "Issue" means:

   1. (1) The first delivery of an instrument by the maker or drawer, whether to a holder or non-holder, for the purpose of giving rights on the instrument to any person; or
   2. (2) If agreed by the payee, the first transmission by the drawer to the payee of an image of an item and information derived from the item that enables the depositary bank to collect the item by transferring or presenting under federal law an electronic check.
2. (b) An unissued instrument, or an unissued incomplete instrument that is completed, is binding on the maker or drawer, but nonissuance is a defense. An instrument that is conditionally issued or is issued for a special purpose is binding on the maker or drawer, but failure of the condition or special purpose to be fulfilled is a defense.
3. (c) “Issuer” applies to issued and unissued instruments and means a maker or drawer of an instrument.

Uniform Commercial Code Comment

3. Subsection (c) defines “issuer” to include the signer of an unissued instrument for convenience of reference in the statute.

2. Subsection (b) continues the rule that nonissuance, conditional issuance or issuance for a special purpose is a defense of the maker or drawer of an instrument. Thus, the defense can be asserted against a person other than a holder in due course. The same rule applies to nonissuance of an incomplete instrument later completed.

1. Under former Section 3-102(1)(a) “issue” was defined as the first delivery to a “holder or a remitter” but the term “remitter” was neither defined nor otherwise used. In revised Article 3, Section 3-105(a) defines “issue” more broadly to include the first delivery to anyone by the drawer or maker for the purpose of giving rights to anyone on the instrument. “Delivery” with respect to instruments is defined in Section 1-201(14) as meaning “voluntary transfer of possession.”

History

Mar. 23, 1995, D.C. Law 10-249, § 2(d), 42 DCR 467

Apr. 20, 2024, D.C. Law 25-158, § 2(e)(2)

Prior Codifications

1981 Ed., § 28:3-105.

Section References

This section is referenced in § 28:3-103.