§ 26-1-4-212 — Presentment by notice of item not payable by, through, or at bank; liability of drawer or endorser

(a) Unless otherwise instructed, a collecting
bank may present an item not payable by, through, or at a bank by
sending to the party to accept or pay a record providing notice that the
bank holds the item for acceptance or payment. The notice must be sent
in time to be received on or before the day when presentment is due
and the bank must meet any requirement of the party to accept or pay
under IC 26-1-3.1-501 by the close of the bank's next banking day after
it knows of the requirement.
(b) If presentment is made by notice and payment, acceptance, or
request for compliance with a requirement under IC 26-1-3.1-501 is not
received by the close of business on the day after maturity or, in the
case of demand items, by the close of business on the third banking day
after notice was sent, the presenting bank may treat the item as
dishonored and charge any drawer or endorser by sending it notice of
the facts.
Formerly: Acts 1963, c.317, s.4-212. As amended by
P.L.152-1986, SEC.219; P.L.222-1993, SEC.28; P.L.135-2009,
SEC.18.