Arkansas Code
Part 5 - Collection of Documentary Drafts
§ 4-4-501. Handling of documentary drafts — Duty to send for presentment and to notify customer of dishonor

A bank that takes a documentary draft for collection shall present or send the draft and accompanying documents for presentment and, upon learning that the draft has not been paid or accepted in due course, shall seasonably notify its customer of the fact even though it may have discounted or bought the draft or extended credit available for withdrawal as of right.
History. Acts 1961, No. 185, § 4-501; A.S.A. 1947, § 85-4-501; Acts 1991, No. 572, § 6.

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Structure Arkansas Code

Arkansas Code

Title 4 - Business and Commercial Law

Subtitle 1 - Uniform Commercial Code

Chapter 4 - Bank Deposits and Collections

Part 5 - Collection of Documentary Drafts

§ 4-4-501. Handling of documentary drafts — Duty to send for presentment and to notify customer of dishonor

§ 4-4-502. Presentment of “on arrival” drafts

§ 4-4-503. Responsibility of presenting bank for documents and goods — Report of reasons for dishonor — Referee in case of need

§ 4-4-504. Privilege of presenting bank to deal with goods — Security interest for expenses