§ 6A-3-502 - Dishonor.
SECTION 6A-3-502
§ 6A-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 dishonoredif presentment is duly made to the maker and the note is not paid on the day ofpresentment.
(2) If the note is not payable on demand and is payable at orthrough a bank or the terms of the note require presentment, the note isdishonored if presentment is duly made and the note is not paid on the day itbecomes 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 becomespayable.
(b) Dishonor of an unaccepted draft other than a documentarydraft is governed by the following rules:
(1) If a check is duly presented for payment to the payorbank otherwise than for immediate payment over the counter, the check isdishonored if the payor bank makes timely return of the check or sends timelynotice of dishonor or nonpayment under § 6A-4-301 or 6A-4-302, or becomesaccountable for the amount of the check under § 6A-4-302.
(2) If a draft is payable on demand and paragraph (1) doesnot apply, the draft is dishonored if presentment for payment is duly made tothe 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, thedraft is dishonored if (i) presentment for payment is duly made to the draweeand payment is not made on the day the draft becomes payable or the day ofpresentment, whichever is later, or (ii) presentment for acceptance is dulymade before the day the draft becomes payable and the draft is not accepted onthe day of presentment.
(4) If a draft is payable on elapse of a period of time aftersight or acceptance, the draft is dishonored if presentment for acceptance isduly made and the draft is not accepted on the day of presentment.
(c) Dishonor of an unaccepted documentary draft occursaccording to the rules stated in subsection (b)(2), (3), and (4), except thatpayment or acceptance may be delayed without dishonor until no later than theclose of the third business day of the drawee following the day on whichpayment or acceptance is required by those paragraphs.
(d) Dishonor of an accepted draft is governed by thefollowing rules:
(1) If the draft is payable on demand, the draft isdishonored if presentment for payment is duly made to the acceptor and thedraft is not paid on the day of presentment.
(2) If the draft is not payable on demand, the draft isdishonored if presentment for payment is duly made to the acceptor and paymentis not made on the day it becomes payable or the day of presentment, whicheveris later.
(e) In any case in which presentment is otherwise requiredfor dishonor under this section and presentment is excused under §6A-3-504, dishonor occurs without presentment if the instrument is not dulyaccepted or paid.
(f) If a draft is dishonored because timely acceptance of thedraft was not made and the person entitled to demand acceptance consents to alate acceptance, from the time of acceptance the draft is treated as neverhaving been dishonored.