§ 3-701 — Letter of Advice of International Sight Draft

Section 3--701. Letter of Advice of International Sight Draft.\n (1) A "letter of advice" is a drawer's communication to the drawee\nthat a described draft has been drawn.\n (2) Unless otherwise agreed when a bank receives from another bank a\nletter of advice of an international sight draft the drawee bank may\nimmediately debit the drawer's account and stop the running of interest\npro tanto. Such a debit and any resulting credit to any account covering\noutstanding drafts leaves in the drawer full power to stop payment or\notherwise dispose of the amount and creates no trust or interest in\nfavor of the holder.\n (3) Unless otherwise agreed and except where a draft is drawn under a\ncredit issued by the drawee, the drawee of an international sight draft\nowes the drawer no duty to pay an unadvised draft but if it does so and\nthe draft is genuine, may appropriately debit the drawer's account.\n