§ 3-508 — Notice of Dishonor

New York § 3-508

• Jurisdiction: New York
• Law UCC: Uniform Commercial Code
• Part 5: Presentment, Notice of Dishonor and Protest
• Art. 3: Commercial Paper

Text

Section 3--508. Notice of Dishonor.\n (1) Notice of dishonor may be given to any person who may be liable on\nthe instrument by or on behalf of the holder or any party who has\nhimself received notice, or any other party who can be compelled to pay\nthe instrument. In addition an agent or bank in whose hands the\ninstrument is dishonored may give notice to his principal or customer or\nto another agent or bank from which the instrument was received.\n (2) Any necessary notice must be given by a bank before its midnight\ndeadline and by any other person before midnight of the third business\nday after dishonor or receipt of notice of dishonor.\n (3) Notice may be given in any reasonable manner. It may be oral or\nwritten and in any terms which identify the instrument and state that it\nhas been dishonored. A misdescription which does not mislead the party\nnotified does not vitiate the notice. Sending the instrument bearing a\nstamp, ticket or writing stating that acceptance or payment has been\nrefused or sending a notice of debit with respect to the instrument is\nsufficient.\n (4) Written notice is given when sent although it is not received.\n (5) Notice to one partner is notice to each although the firm has been\ndissolved.\n (6) When any party is in insolvency proceedings instituted after the\nissue of the instrument notice may be given either to the party or to\nthe representative of his estate.\n (7) When any party is dead or incompetent notice may be sent to his\nlast known address or given to his personal representative.\n (8) Notice operates for the benefit of all parties who have rights on\nthe instrument against the party notified.\n