Parties with secondary liability to an instrument can only be sought after the instrument has been dishonored.

Name: Parties with secondary liability to an instrument can only be sought after the instrument has been dishonored.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Parties with secondary liability, such as endorsers or guarantors, can only be held liable for dishonored instruments. They are not initially responsible for payment but can be pursued if the primary party (such as the drawer or maker) fails to provide payment.

Parties with Secondary Liability to an Instrument Can Only Be