§ 4-3-504 — Excused presentment and notice of dishonor

(a) Presentment for
payment or acceptance of an instrument is excused if (i) the person entitled to
present the instrument cannot with reasonable diligence make presentment, (ii) the
maker or acceptor has obligation to pay the instrument or is dead or in insolvency
proceedings, (iii) by the terms of the instrument presentment is not necessary to
enforce the obligation of indorsers or the drawer, (iv) the drawer or indorser whose
obligation is being enforced has waived presentment or otherwise has no reason to
expect or right to require that the instrument be paid or accepted, or (v) the drawer
instructed the drawee not to pay or accept the draft or the drawee was not
obligated to the drawer to pay the draft.

(b) Notice of dishonor is excused if (i) by the terms of the instrument notice
of dishonor is not necessary to enforce the obligation of a party to pay the
instrument, or (ii) the party whose obligation is being enforced waived notice of
dishonor. A waiver of presentment is also a waiver of notice of dishonor.

(c) Delay in giving notice of dishonor is excused if the delay was caused by
circumstances beyond the control of the person giving the notice and the person
giving the notice exercised reasonable diligence after the cause of the delay
ceased to operate.

Legislative History

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