This text of North Dakota § 41-03-59 ((3-502) Dishonor) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
1.Dishonor of a note is governed by the following rules:
a.If the note is payable on demand, the note is dishonored if presentment is duly
made to the maker and the note is not paid on the day of presentment.
b.If the note is not payable on demand and is payable at or through a bank or the
terms of the note require presentment, the note is dishonored if presentment is
duly made and the note is not paid on the day it becomes payable or the day of
presentment, whichever is later.
c.If the note is not payable on demand and subdivision b does not apply, the note is
dishonored if it is not paid on the day it becomes payable.
2.Dishonor of an unaccepted draft other than a documentary draft is governed by the
following rules:
a.If a check is duly presented for payment to the payor bank othe
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1. Dishonor of a note is governed by the following rules:
a. If the note is payable on demand, the note is dishonored if presentment is duly
made to the maker and the note is not paid on the day of presentment.
b. If the note is not payable on demand and is payable at or through a bank or the
terms of the note require presentment, the note is dishonored if presentment is
duly made and the note is not paid on the day it becomes payable or the day of
presentment, whichever is later.
c. If the note is not payable on demand and subdivision b does not apply, the note is
dishonored if it is not paid on the day it becomes payable.
2. Dishonor of an unaccepted draft other than a documentary draft is governed by the
following rules:
a. If a check is duly presented for payment to the payor bank otherwise than for
immediate payment over the counter, the check is dishonored if the payor bank
makes timely return of the check or sends timely notice of dishonor or
nonpayment under section 41-04-29 or 41-04-30, or becomes accountable for the
amount of the check under section 41-04-30.
b. If the draft is payable on demand and subdivision a does not apply, the draft is
dishonored if presentment for payment is duly made to the drawee and the draft
is not paid on the day of presentment.
c. If a draft is payable on a date stated in the draft, the draft is dishonored if
presentment for payment is duly made to the drawee and payment is not made
on the day the draft becomes payable or the day of presentment, whichever is
later, or presentment for acceptance is duly made before the day the draft
becomes payable and the draft is not accepted on the day of presentment.
d. If a draft is payable on elapse of a period of time after sight or acceptance, the
draft is dishonored if presentment for acceptance is duly made and the draft is not
accepted on the day of presentment.
3. Dishonor of an unaccepted documentary draft occurs according to the rules stated in
subdivisions b, c, and e of subsection 2, except that payment or acceptance may be
delayed without dishonor until no later than the close of the third business day of the
drawee following the day on which payment or acceptance is required by those
paragraphs.
4. Dishonor of an accepted draft is governed by the following rules:
a. If the draft is payable on demand, the draft is dishonored if presentment for
payment is duly made to the acceptor and the draft is not paid on the day of
presentment.
b. If the draft is not payable on demand, the draft is dishonored if presentment for
payment is duly made to the acceptor and payment is not made on the day it
becomes payable or the day of presentment, whichever is later.
5. In any case in which presentment is otherwise required for dishonor under this section
and presentment is excused under section 41-03-61, dishonor occurs without
presentment if the instrument is not duly accepted or paid.
6. If a draft is dishonored because timely acceptance of the draft was not made and the
person entitled to demand acceptance consents to a late acceptance, from the time of
acceptance the draft is treated as never having been dishonored.