§490:3-502  Dishonor.  (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 490:4-301 or 490:4-302, or
becomes accountable for the amount of the check under section 490:4-302.



(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 (i) 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 (ii) 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 subsection (b)(2), (3), and (4),
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 490:3-504, 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. [L 1991, c 118, pt of §1]