3501. (a) "Presentment" means a demand made by or on behalf of a
person entitled to enforce an instrument (1) to pay the instrument
made to the drawee or a party obliged to pay the instrument or, in
the case of a note or accepted draft payable at a bank, to the bank,
or (2) to accept a draft made to the drawee.
(b) The following rules are subject to Division 4 (commencing with
Section 4101), agreement of the parties, and clearinghouse rules and
the like:
(1) Presentment may be made at the place of payment of the
instrument and shall be made at the place of payment if the
instrument is payable at a bank in the United States; may be made by
any commercially reasonable means, including an oral, written, or
electronic communication; is effective when the demand for payment or
acceptance is received by the person to whom presentment is made;
and is effective if made to any one of two or more makers, acceptors,
drawees, or other payors.
(2) Upon demand of the person to whom presentment is made, the
person making presentment shall (A) exhibit the instrument, (B) give
reasonable identification and, if presentment is made on behalf of
another person, reasonable evidence of authority to do so, and (C)
sign a receipt on the instrument for any payment made or surrender
the instrument if full payment is made.
(3) Without dishonoring the instrument, the party to whom
presentment is made may (A) return the instrument for lack of a
necessary indorsement, or (B) refuse payment or acceptance for
failure of the presentment to comply with the terms of the
instrument, an agreement of the parties, or other applicable law or
rule.
(4) The party to whom presentment is made may treat presentment as
occurring on the next business day after the day of presentment if
the party to whom presentment is made has established a cutoff hour
not earlier than 2 p.m. for the receipt and processing of instruments
presented for payment or acceptance and presentment is made after
the cutoff hour.
3502. (a) Dishonor of a note is governed by the following rules:
(1) If the note is payable on demand, the note is dishonored if
presentment is duly made to the maker and the note is not paid on the
day of presentment.
(2) If the note is not payable on demand and is payable at or
through a bank or the terms of the note require presentment, the note
is dishonored if presentment is duly made and the note is not paid
on the day it becomes payable or the day of presentment, whichever is
later.
(3) If the note is not payable on demand and paragraph (2) does
not apply, the note is dishonored if it is not paid on the day it
becomes payable.
(b) Dishonor of an unaccepted draft other than a documentary draft
is governed by the following rules:
(1) If a check is duly presented for payment to the payor bank
otherwise than for immediate payment over the counter, the check is
dishonored if the payor bank makes timely return of the check or
sends timely notice of dishonor or nonpayment under Section 4301 or
4302, or becomes accountable for the amount of the check under
Section 4302.
(2) If a draft is payable on demand and paragraph (1) does not
apply, the draft is dishonored if presentment for payment is duly
made to the drawee and the draft is not paid on the day of
presentment.
(3) If a draft is payable on a date stated in the draft, the draft
is dishonored if (A) presentment for payment is duly made to the
drawee and payment is not made on the day the draft becomes payable
or the day of presentment, whichever is later, or (B) presentment for
acceptance is duly made before the day the draft becomes payable and
the draft is not accepted on the day of presentment.
(4) If a draft is payable on elapse of a period of time after
sight or acceptance, the draft is dishonored if presentment for
acceptance is duly made and the draft is not accepted on the day of
presentment.
(c) Dishonor of an unaccepted documentary draft occurs according
to the rules stated in paragraphs (2), (3), and (4) of subdivision
(b), except that payment or acceptance may be delayed without
dishonor until no later than the close of the third business day of
the drawee following the day on which payment or acceptance is
required by those paragraphs.
(d) Dishonor of an accepted draft is governed by the following
rules:
(1) If the draft is payable on demand, the draft is dishonored if
presentment for payment is duly made to the acceptor and the draft is
not paid on the day of presentment.
(2) If the draft is not payable on demand, the draft is dishonored
if presentment for payment is duly made to the acceptor and payment
is not made on the day it becomes payable or the day of presentment,
whichever is later.
(e) In any case in which presentment is otherwise required for
dishonor under this section and presentment is excused under Section
3504, dishonor occurs without presentment if the instrument is not
duly accepted or paid.
(f) If a draft is dishonored because timely acceptance of the
draft was not made and the person entitled to demand acceptance
consents to a late acceptance, from the time of acceptance the draft
is treated as never having been dishonored.
3503. (a) The obligation of an indorser stated in subdivision (a)
of Section 3415 and the obligation of a drawer stated in subdivision
(d) of Section 3414 may not be enforced unless (1) the indorser or
drawer is given notice of dishonor of the instrument complying with
this section or (2) notice of dishonor is excused under subdivision
(b) of Section 3504.
(b) Notice of dishonor may be given by any person; may be given by
any commercially reasonable means, including an oral, written, or
electronic communication; and is sufficient if it reasonably
identifies the instrument and indicates that the instrument has been
dishonored or has not been paid or accepted. Return of an instrument
given to a bank for collection is sufficient notice of dishonor.
(c) Subject to subdivision (c) of Section 3504, with respect to an
instrument taken for collection by a collecting bank, notice of
dishonor shall be given (1) by the bank before midnight of the next
banking day following the banking day on which the bank receives
notice of dishonor of the instrument, or (2) by any other person
within 30 days following the day on which the person receives notice
of dishonor. With respect to any other instrument, notice of dishonor
shall be given within 30 days following the day on which dishonor
occurs.
3504. (a) Presentment for payment or acceptance of an instrument is
excused if (1) the person entitled to present the instrument cannot
with reasonable diligence make presentment, (2) the maker or acceptor
has repudiated an obligation to pay the instrument or is dead or in
insolvency proceedings, (3) by the terms of the instrument
presentment is not necessary to enforce the obligation of indorsers
or the drawer, (4) the drawer or indorser whose obligation is being
enforced has waived presentment or otherwise has no reason to expect
or right to require that the instrument be paid or accepted, or (5)
the drawer instructed the drawee not to pay or accept the draft or
the drawee was not obligated to the drawer to pay the draft.
(b) Notice of dishonor is excused if (1) by the terms of the
instrument notice of dishonor is not necessary to enforce the
obligation of a party to pay the instrument, or (2) the party whose
obligation is being enforced waived notice of dishonor. A waiver of
presentment is also a waiver of notice of dishonor.
(c) Delay in giving notice of dishonor is excused if the delay was
caused by circumstances beyond the control of the person giving the
notice and the person giving the notice exercised reasonable
diligence after the cause of the delay ceased to operate.
3505. (a) The following are admissible as evidence and create a
presumption of dishonor and of any notice of dishonor stated:
(1) A document regular in form as provided in subdivision (b)
which purports to be a protest.
(2) A purported stamp or writing of the drawee, payor bank, or
presenting bank on or accompanying the instrument stating that
acceptance or payment has been refused unless reasons for the refusal
are stated and the reasons are not consistent with dishonor.
(3) A book or record of the drawee, payor bank, or collecting
bank, kept in the usual course of business which shows dishonor, even
if there is no evidence of who made the entry.
(b) A protest is a certificate of dishonor made by a United States
consul or vice consul, or a notary public or other person authorized
to administer oaths by the law of the place where dishonor occurs.
It may be made upon information satisfactory to that person. The
protest shall identify the instrument and certify either that
presentment has been made or, if not made, the reason why it was not
made, and that the instrument has been dishonored by nonacceptance or
nonpayment. The protest may also certify that notice of dishonor has
been given to some or all parties.
3501. (a) "Presentment" means a demand made by or on behalf of a
person entitled to enforce an instrument (1) to pay the instrument
made to the drawee or a party obliged to pay the instrument or, in
the case of a note or accepted draft payable at a bank, to the bank,
or (2) to accept a draft made to the drawee.
(b) The following rules are subject to Division 4 (commencing with
Section 4101), agreement of the parties, and clearinghouse rules and
the like:
(1) Presentment may be made at the place of payment of the
instrument and shall be made at the place of payment if the
instrument is payable at a bank in the United States; may be made by
any commercially reasonable means, including an oral, written, or
electronic communication; is effective when the demand for payment or
acceptance is received by the person to whom presentment is made;
and is effective if made to any one of two or more makers, acceptors,
drawees, or other payors.
(2) Upon demand of the person to whom presentment is made, the
person making presentment shall (A) exhibit the instrument, (B) give
reasonable identification and, if presentment is made on behalf of
another person, reasonable evidence of authority to do so, and (C)
sign a receipt on the instrument for any payment made or surrender
the instrument if full payment is made.
(3) Without dishonoring the instrument, the party to whom
presentment is made may (A) return the instrument for lack of a
necessary indorsement, or (B) refuse payment or acceptance for
failure of the presentment to comply with the terms of the
instrument, an agreement of the parties, or other applicable law or
rule.
(4) The party to whom presentment is made may treat presentment as
occurring on the next business day after the day of presentment if
the party to whom presentment is made has established a cutoff hour
not earlier than 2 p.m. for the receipt and processing of instruments
presented for payment or acceptance and presentment is made after
the cutoff hour.
3502. (a) Dishonor of a note is governed by the following rules:
(1) If the note is payable on demand, the note is dishonored if
presentment is duly made to the maker and the note is not paid on the
day of presentment.
(2) If the note is not payable on demand and is payable at or
through a bank or the terms of the note require presentment, the note
is dishonored if presentment is duly made and the note is not paid
on the day it becomes payable or the day of presentment, whichever is
later.
(3) If the note is not payable on demand and paragraph (2) does
not apply, the note is dishonored if it is not paid on the day it
becomes payable.
(b) Dishonor of an unaccepted draft other than a documentary draft
is governed by the following rules:
(1) If a check is duly presented for payment to the payor bank
otherwise than for immediate payment over the counter, the check is
dishonored if the payor bank makes timely return of the check or
sends timely notice of dishonor or nonpayment under Section 4301 or
4302, or becomes accountable for the amount of the check under
Section 4302.
(2) If a draft is payable on demand and paragraph (1) does not
apply, the draft is dishonored if presentment for payment is duly
made to the drawee and the draft is not paid on the day of
presentment.
(3) If a draft is payable on a date stated in the draft, the draft
is dishonored if (A) presentment for payment is duly made to the
drawee and payment is not made on the day the draft becomes payable
or the day of presentment, whichever is later, or (B) presentment for
acceptance is duly made before the day the draft becomes payable and
the draft is not accepted on the day of presentment.
(4) If a draft is payable on elapse of a period of time after
sight or acceptance, the draft is dishonored if presentment for
acceptance is duly made and the draft is not accepted on the day of
presentment.
(c) Dishonor of an unaccepted documentary draft occurs according
to the rules stated in paragraphs (2), (3), and (4) of subdivision
(b), except that payment or acceptance may be delayed without
dishonor until no later than the close of the third business day of
the drawee following the day on which payment or acceptance is
required by those paragraphs.
(d) Dishonor of an accepted draft is governed by the following
rules:
(1) If the draft is payable on demand, the draft is dishonored if
presentment for payment is duly made to the acceptor and the draft is
not paid on the day of presentment.
(2) If the draft is not payable on demand, the draft is dishonored
if presentment for payment is duly made to the acceptor and payment
is not made on the day it becomes payable or the day of presentment,
whichever is later.
(e) In any case in which presentment is otherwise required for
dishonor under this section and presentment is excused under Section
3504, dishonor occurs without presentment if the instrument is not
duly accepted or paid.
(f) If a draft is dishonored because timely acceptance of the
draft was not made and the person entitled to demand acceptance
consents to a late acceptance, from the time of acceptance the draft
is treated as never having been dishonored.
3503. (a) The obligation of an indorser stated in subdivision (a)
of Section 3415 and the obligation of a drawer stated in subdivision
(d) of Section 3414 may not be enforced unless (1) the indorser or
drawer is given notice of dishonor of the instrument complying with
this section or (2) notice of dishonor is excused under subdivision
(b) of Section 3504.
(b) Notice of dishonor may be given by any person; may be given by
any commercially reasonable means, including an oral, written, or
electronic communication; and is sufficient if it reasonably
identifies the instrument and indicates that the instrument has been
dishonored or has not been paid or accepted. Return of an instrument
given to a bank for collection is sufficient notice of dishonor.
(c) Subject to subdivision (c) of Section 3504, with respect to an
instrument taken for collection by a collecting bank, notice of
dishonor shall be given (1) by the bank before midnight of the next
banking day following the banking day on which the bank receives
notice of dishonor of the instrument, or (2) by any other person
within 30 days following the day on which the person receives notice
of dishonor. With respect to any other instrument, notice of dishonor
shall be given within 30 days following the day on which dishonor
occurs.
3504. (a) Presentment for payment or acceptance of an instrument is
excused if (1) the person entitled to present the instrument cannot
with reasonable diligence make presentment, (2) the maker or acceptor
has repudiated an obligation to pay the instrument or is dead or in
insolvency proceedings, (3) by the terms of the instrument
presentment is not necessary to enforce the obligation of indorsers
or the drawer, (4) the drawer or indorser whose obligation is being
enforced has waived presentment or otherwise has no reason to expect
or right to require that the instrument be paid or accepted, or (5)
the drawer instructed the drawee not to pay or accept the draft or
the drawee was not obligated to the drawer to pay the draft.
(b) Notice of dishonor is excused if (1) by the terms of the
instrument notice of dishonor is not necessary to enforce the
obligation of a party to pay the instrument, or (2) the party whose
obligation is being enforced waived notice of dishonor. A waiver of
presentment is also a waiver of notice of dishonor.
(c) Delay in giving notice of dishonor is excused if the delay was
caused by circumstances beyond the control of the person giving the
notice and the person giving the notice exercised reasonable
diligence after the cause of the delay ceased to operate.
3505. (a) The following are admissible as evidence and create a
presumption of dishonor and of any notice of dishonor stated:
(1) A document regular in form as provided in subdivision (b)
which purports to be a protest.
(2) A purported stamp or writing of the drawee, payor bank, or
presenting bank on or accompanying the instrument stating that
acceptance or payment has been refused unless reasons for the refusal
are stated and the reasons are not consistent with dishonor.
(3) A book or record of the drawee, payor bank, or collecting
bank, kept in the usual course of business which shows dishonor, even
if there is no evidence of who made the entry.
(b) A protest is a certificate of dishonor made by a United States
consul or vice consul, or a notary public or other person authorized
to administer oaths by the law of the place where dishonor occurs.
It may be made upon information satisfactory to that person. The
protest shall identify the instrument and certify either that
presentment has been made or, if not made, the reason why it was not
made, and that the instrument has been dishonored by nonacceptance or
nonpayment. The protest may also certify that notice of dishonor has
been given to some or all parties.
3501. (a) "Presentment" means a demand made by or on behalf of a
person entitled to enforce an instrument (1) to pay the instrument
made to the drawee or a party obliged to pay the instrument or, in
the case of a note or accepted draft payable at a bank, to the bank,
or (2) to accept a draft made to the drawee.
(b) The following rules are subject to Division 4 (commencing with
Section 4101), agreement of the parties, and clearinghouse rules and
the like:
(1) Presentment may be made at the place of payment of the
instrument and shall be made at the place of payment if the
instrument is payable at a bank in the United States; may be made by
any commercially reasonable means, including an oral, written, or
electronic communication; is effective when the demand for payment or
acceptance is received by the person to whom presentment is made;
and is effective if made to any one of two or more makers, acceptors,
drawees, or other payors.
(2) Upon demand of the person to whom presentment is made, the
person making presentment shall (A) exhibit the instrument, (B) give
reasonable identification and, if presentment is made on behalf of
another person, reasonable evidence of authority to do so, and (C)
sign a receipt on the instrument for any payment made or surrender
the instrument if full payment is made.
(3) Without dishonoring the instrument, the party to whom
presentment is made may (A) return the instrument for lack of a
necessary indorsement, or (B) refuse payment or acceptance for
failure of the presentment to comply with the terms of the
instrument, an agreement of the parties, or other applicable law or
rule.
(4) The party to whom presentment is made may treat presentment as
occurring on the next business day after the day of presentment if
the party to whom presentment is made has established a cutoff hour
not earlier than 2 p.m. for the receipt and processing of instruments
presented for payment or acceptance and presentment is made after
the cutoff hour.
3502. (a) Dishonor of a note is governed by the following rules:
(1) If the note is payable on demand, the note is dishonored if
presentment is duly made to the maker and the note is not paid on the
day of presentment.
(2) If the note is not payable on demand and is payable at or
through a bank or the terms of the note require presentment, the note
is dishonored if presentment is duly made and the note is not paid
on the day it becomes payable or the day of presentment, whichever is
later.
(3) If the note is not payable on demand and paragraph (2) does
not apply, the note is dishonored if it is not paid on the day it
becomes payable.
(b) Dishonor of an unaccepted draft other than a documentary draft
is governed by the following rules:
(1) If a check is duly presented for payment to the payor bank
otherwise than for immediate payment over the counter, the check is
dishonored if the payor bank makes timely return of the check or
sends timely notice of dishonor or nonpayment under Section 4301 or
4302, or becomes accountable for the amount of the check under
Section 4302.
(2) If a draft is payable on demand and paragraph (1) does not
apply, the draft is dishonored if presentment for payment is duly
made to the drawee and the draft is not paid on the day of
presentment.
(3) If a draft is payable on a date stated in the draft, the draft
is dishonored if (A) presentment for payment is duly made to the
drawee and payment is not made on the day the draft becomes payable
or the day of presentment, whichever is later, or (B) presentment for
acceptance is duly made before the day the draft becomes payable and
the draft is not accepted on the day of presentment.
(4) If a draft is payable on elapse of a period of time after
sight or acceptance, the draft is dishonored if presentment for
acceptance is duly made and the draft is not accepted on the day of
presentment.
(c) Dishonor of an unaccepted documentary draft occurs according
to the rules stated in paragraphs (2), (3), and (4) of subdivision
(b), except that payment or acceptance may be delayed without
dishonor until no later than the close of the third business day of
the drawee following the day on which payment or acceptance is
required by those paragraphs.
(d) Dishonor of an accepted draft is governed by the following
rules:
(1) If the draft is payable on demand, the draft is dishonored if
presentment for payment is duly made to the acceptor and the draft is
not paid on the day of presentment.
(2) If the draft is not payable on demand, the draft is dishonored
if presentment for payment is duly made to the acceptor and payment
is not made on the day it becomes payable or the day of presentment,
whichever is later.
(e) In any case in which presentment is otherwise required for
dishonor under this section and presentment is excused under Section
3504, dishonor occurs without presentment if the instrument is not
duly accepted or paid.
(f) If a draft is dishonored because timely acceptance of the
draft was not made and the person entitled to demand acceptance
consents to a late acceptance, from the time of acceptance the draft
is treated as never having been dishonored.
3503. (a) The obligation of an indorser stated in subdivision (a)
of Section 3415 and the obligation of a drawer stated in subdivision
(d) of Section 3414 may not be enforced unless (1) the indorser or
drawer is given notice of dishonor of the instrument complying with
this section or (2) notice of dishonor is excused under subdivision
(b) of Section 3504.
(b) Notice of dishonor may be given by any person; may be given by
any commercially reasonable means, including an oral, written, or
electronic communication; and is sufficient if it reasonably
identifies the instrument and indicates that the instrument has been
dishonored or has not been paid or accepted. Return of an instrument
given to a bank for collection is sufficient notice of dishonor.
(c) Subject to subdivision (c) of Section 3504, with respect to an
instrument taken for collection by a collecting bank, notice of
dishonor shall be given (1) by the bank before midnight of the next
banking day following the banking day on which the bank receives
notice of dishonor of the instrument, or (2) by any other person
within 30 days following the day on which the person receives notice
of dishonor. With respect to any other instrument, notice of dishonor
shall be given within 30 days following the day on which dishonor
occurs.
3504. (a) Presentment for payment or acceptance of an instrument is
excused if (1) the person entitled to present the instrument cannot
with reasonable diligence make presentment, (2) the maker or acceptor
has repudiated an obligation to pay the instrument or is dead or in
insolvency proceedings, (3) by the terms of the instrument
presentment is not necessary to enforce the obligation of indorsers
or the drawer, (4) the drawer or indorser whose obligation is being
enforced has waived presentment or otherwise has no reason to expect
or right to require that the instrument be paid or accepted, or (5)
the drawer instructed the drawee not to pay or accept the draft or
the drawee was not obligated to the drawer to pay the draft.
(b) Notice of dishonor is excused if (1) by the terms of the
instrument notice of dishonor is not necessary to enforce the
obligation of a party to pay the instrument, or (2) the party whose
obligation is being enforced waived notice of dishonor. A waiver of
presentment is also a waiver of notice of dishonor.
(c) Delay in giving notice of dishonor is excused if the delay was
caused by circumstances beyond the control of the person giving the
notice and the person giving the notice exercised reasonable
diligence after the cause of the delay ceased to operate.
3505. (a) The following are admissible as evidence and create a
presumption of dishonor and of any notice of dishonor stated:
(1) A document regular in form as provided in subdivision (b)
which purports to be a protest.
(2) A purported stamp or writing of the drawee, payor bank, or
presenting bank on or accompanying the instrument stating that
acceptance or payment has been refused unless reasons for the refusal
are stated and the reasons are not consistent with dishonor.
(3) A book or record of the drawee, payor bank, or collecting
bank, kept in the usual course of business which shows dishonor, even
if there is no evidence of who made the entry.
(b) A protest is a certificate of dishonor made by a United States
consul or vice consul, or a notary public or other person authorized
to administer oaths by the law of the place where dishonor occurs.
It may be made upon information satisfactory to that person. The
protest shall identify the instrument and certify either that
presentment has been made or, if not made, the reason why it was not
made, and that the instrument has been dishonored by nonacceptance or
nonpayment. The protest may also certify that notice of dishonor has
been given to some or all parties.
