Definition of Secondarily liable

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TeachMeFinance.com - explain Secondarily liable




historic definition...

Secondarily liable -- The person primarily liable on a negotiable instrument is the person. upon whom rests the absolute requirement to pay it ; all other parties are secondarily liable. The maker of a note is primarily liable, while an indorser is secondarily liable. When a draft has been accepted the acceptor is primarily liable, while the drawer is secondarily liable. When, however, a draft has not been accepted the drawer is primarily liable. The drawer (issuer) of a check is primarily liable, while an indorser is secondarily liable. An indorser is always secondarily liable.



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Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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