§ 26-1-3.1-503 — Notice of dishonor

Indiana § 26-1-3.1-503

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 3.1: Negotiable Instruments

Text

(a) The obligation of an endorser stated
in IC 26-1-3.1-415(a) and the obligation of a drawer stated in IC 26-1-3.1-414(d) may not be enforced unless:
(1) the endorser or drawer is given notice of dishonor of the
instrument complying with this section; or
(2) notice of dishonor is excused under IC 26-1-3.1-504(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 IC 26-1-3.1-504(c), with respect to an instrument
taken for collection by a collecting bank, notice of dishonor must be
given:
(1) 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
(2) by any other person within thirty (30) 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 (30) days following the day on which dishonor occurs.

Legislative History

As added by P.L.222-1993, SEC.5.