Page:United States Statutes at Large Volume 77.djvu/721

 77 STAT. ]

PUBLIC LAW 88-243-DEC. 30, 1963

(d) a signed receipt on the instrument for any partial or full payment and its surrender upon full payment. (2) Failure to comply with any such requirement invalidates the presentment but the person presenting has a reasonable time in which to comply and the time for acceptance or payment nuis from the time of compliance. § 28:3—506. Time allowed for acceptance or payment (1) Acceptance may be deferred without dishonor until the close of the next business day following presentment. The holder may also in a good faith effort to obtam acceptance and without either dishonor of the instrument or discharge of secondary parties allow postponement of acceptance for an additional business day. (2) Except as a longer time is allowed in the case of documentary drafts drawn under a letter of credit, and unless an earlier time is agreed to by the party to pay, payment of an instrument may be deferred without dishonor pending reasonable examination to determine whether it is properly payable, but payment must be made in any event before the close of business on the day of presentment. §28:3—507. Dishonor; holder's right of recourse; term allowing re-presentment (1) An instrument is dishonored when (a) a necessary or optional presentment is duly made and due acceptance or payment is refused or cannot be obtained within the prescribed time or in case of bank collections the instrument is seasonably I'eturned by the midnight deadline (section 28:4—301); or (b) presentment is excused and the instrument is not duly accepted or paid. (2) Subject to any necessary notice of dishonor and protest, the holder has upon dishonor an immediate right of recourse against the drawere and indorsers. (3) Return of an instrument for lack of proper indorsement is not dishonor. (4) A term in a draft or an indorsement thereof allowing a stated time for re-presentment in the event of any dishonor of the draft by iionacce]3tance if a time draft or by nonpayment if a sight draft gives the holder as against any secondary party bound by the terai an option to waive the dishonor without affecting the liability of the secondary pai"ty and he may present again up to the end of the stated time. §28:3—508. Notice of dishonor (1) Notice of dishonor may be given to any person who may be liable on the instrument by or on behalf of the holder or any party who has himself received notice, or any other party who can be compelled to pay the instrument. In addition an agent or bank in whose liands the instrument is dishonored may give notice to his principal or customer or to another agent or bank from which the instrument was received. (2) Any necessary notice nmst be given by a bank before its midnight deadline and by any other person before midnight of the third business day after dislionor or receipt of notice of dishonor. (3) Notice may be given in any reasonable manner. I t may be oral or written and in any terms which identify the instrument and state that it has been dishonored. A misdescription which does not mislead the party notified does not vitiate the notice. Sending the instrument bearing a stamp, ticket or writing stating that acceptance or payment has been refused or sending a notice of debit with respect to the instrument is sufficient. 93-025 0-64-46

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