§ 41-03-60 — (3-503) Notice of dishonor

1. The obligation of an endorser stated in subsection 1 of section 41-03-52 and the
obligation of a drawer stated in subsection 3 of section 41-03-51 may not be enforced
unless the endorser or drawer is given notice of dishonor of the instrument complying
with this section or notice of dishonor is excused under subsection 3 of section
41-03-51.
2. 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 a sufficient notice of dishonor.
3. Subject to subsection 3 of section 41-03-61, with respect to an instrument taken for
collection by a collecting bank, notice must be given by the bank before midnight of the
next banking day following the banking day on which the bank receives the notice of
dishonor of the instrument and by any other person within thirty days following the day
on which dishonor occurs.