§ 26-1-4-502 — Presentment of "on arrival" drafts

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.
Formerly: Acts 1963, c.317, s.4-502. As amended by
P.L.222-1993, SEC.43.