(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 section 28:3-501 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 section 28:3-501 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.
(Dec. 30, 1963, 77 Stat. 701, Pub. L. 88-243, § 1; Mar. 23, 1995, D.C. Law 10-249, § 2(e), 42 DCR 467; Apr. 27, 2013, D.C. Law 19-299, § 6(g), 60 DCR 2634.)
1981 Ed., § 28:4-212.
1973 Ed., § 28:4-210.
The 2013 amendment by D.C. Law 19-299 substituted “record providing notice” for “written notice” in (a).
1. This section codifies a practice extensively followed in presentation of trade acceptances and documentary and other drafts drawn on nonbank payors. It imposes a duty on the payor to respond to the notice of the item if the item is not to be considered dishonored. Notice of such a dishonor charges drawers and indorsers. Presentment under this section is good presentment under Article 3. See Section 3-501.
2. A drawee not receiving notice is not, of course, liable to the drawer for wrongful dishonor.
3. A bank so presenting an instrument must be sufficiently close to the drawee to be able to exhibit the instrument on the day it is requested to do so or the next business day at the latest.
Reason for 1990 Change [D.C. Law 10-249]
The term “secondary party” is no longer used in Articles 3 and 4. The other modifications are made to conform with current legislative drafting practices, with no intent to change substance.
Structure District of Columbia Code
Title 28 - Commercial Instruments and Transactions. [Enacted title]
Subtitle I - Uniform Commercial Code
Article 4 - Bank Deposits and Collections
Part 2 - Collection of Items: Depositary and Collecting Banks
§ 28:4–202. Responsibility for collection or return; when action timely
§ 28:4–203. Effect of instructions
§ 28:4–204. Methods of sending and presenting; sending directly to payor bank
§ 28:4–205. Depositary bank holder of unindorsed item
§ 28:4–206. Transfer between banks
§ 28:4–207. Transfer warranties
§ 28:4–208. Presentment warranties
§ 28:4–209. Encoding and retention warranties
§ 28:4–210. Security interest of collecting bank in items, accompanying documents, and proceeds
§ 28:4–211. When bank gives value for purposes of holder in due course
§ 28:4–213. Medium and time of settlement by bank
§ 28:4–214. Right of charge-back or refund; liability of collecting bank; return of item