(a) Unless otherwise instructed, a collecting bank may present an item not payable by, through, or at a bank by sending to the party to accept or pay a record providing notice that the bank holds the item for acceptance or payment. The notice must be sent in time to be received on or before the day when presentment is due and the bank must meet any requirement of the party to accept or pay under § 4-3-501 by the close of the bank's next banking day after it knows of the requirement.
(b) If presentment is made by notice and payment, acceptance, or request for compliance with a requirement under § 4-3-501 is not received by the close of business on the day after maturity or, in the case of demand items, by the close of business on the third banking day after notice was sent, the presenting bank may treat the item as dishonored and charge any drawer or indorser by sending it notice of the facts.
History. Acts 1961, No. 185, § 4-210; A.S.A. 1947, § 85-4-210; Acts 1991, No. 572, § 6; 2005, No. 856, § 48.
A.C.R.C. Notes. This section was formerly codified as § 4-4-210. Former § 4-4-212 has been renumbered as § 4-4-214.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
Chapter 4 - Bank Deposits and Collections
Part 2 - Collection of Items — Depositary and Collecting Banks
§ 4-4-202. Responsibility for collection or return — When action timely
§ 4-4-203. Effect of instructions
§ 4-4-204. Methods of sending and presenting — Sending directly to payor bank
§ 4-4-205. Depositary bank holder of unindorsed item
§ 4-4-206. Transfer between banks
§ 4-4-207. Transfer warranties
§ 4-4-208. Presentment warranties
§ 4-4-209. Encoding and retention warranties
§ 4-4-210. Security interest of collecting bank in items, accompanying documents, and proceeds
§ 4-4-211. When bank gives value for purposes of holder in due course
§ 4-4-213. Medium and time of settlement by bank
§ 4-4-214. Right of charge-back or refund — Liability of collecting bank — Return of item