§ 4-3-503 — Notice of dishonor

(a) The obligation of an indorser stated in
section 4-3-415 (a) and the obligation of a drawer stated in section 4-3-414 (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 4-3-504 (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 4-3-504 (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.

Legislative History

Source: L. 94: Entire article R&RE, p. 875, � 1, effective January 1, 1995.