Sec. 212. (a) Unless otherwise instructed, a collecting bank may present an item not payable
by, through, or at a bank by sending to the party to accept or pay a record providing
notice that the bank holds the item for acceptance or payment. The notice must be sent in time to be received on or before the day when presentment
is due and the bank must meet any requirement of the party to accept or pay under
IC 26-1-3. 1-501 by the close of the bank's next banking day after it knows of the requirement.
(b) If presentment is made by notice and payment, acceptance, or request for compliance
with a requirement under IC 26-1-3.1-501 is not received by the close of business on the day after maturity or, in the case
of demand items, by the close of business on the third banking day after notice was
sent, the presenting bank may treat the item as dishonored and charge any drawer or
endorser by sending it notice of the facts.
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