(a) The obligation of an indorser stated in section 490:3-415(a) and the obligation of a drawer stated in section 490:3-414(d) may not be enforced unless (i) the indorser or drawer is given notice of dishonor
of the instrument complying with this section or (ii) notice of dishonor is excused
under section 490:3-504(b).
(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 section 490:3-504(c), with respect to an instrument taken for collection by a collecting bank, notice
of dishonor must be given (i) 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 (ii) by any other person within thirty days following the day on which the person
receives notice of dishonor. With respect to any other instrument, notice of dishonor must be given within thirty
days following the day on which dishonor occurs.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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