Alabama § 7-4-502 Presentment of “On Arrival” Drafts

Alabama Statutes

§ 7-4-502 — Presentment of “On Arrival” Drafts

Alabama § 7-4-502

Title 7Commercial Code

Art. 4Bank Deposits and Collections

Part 5Collection of Documentary Drafts

This text of Alabama § 7-4-502 (Presentment of “On Arrival” Drafts) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 7-4-502 (2026).

Text

If a draft or the relevant instructions require presentment “on arrival”, “when goods arrive” or the like, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal to pay or accept because the goods have not arrived is not dishonor; the bank must notify its transferor of the refusal but need not present the draft again until it is instructed to do so or learns of the arrival of the goods.

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If a draft or the relevant instructions require presentment “on arrival”, “when goods arrive” or the like, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal to pay or accept because the goods have not arrived is not dishonor; the bank must notify its transferor of the refusal but need not present the draft again until it is instructed to do so or learns of the arrival of the goods.