New York Laws
Part 2 - Collection of Items: Depositary and Collecting Banks
4-210 - Presentment by Notice of Item Not Payable By, Through or at a Bank; Liability of Secondary Parties.

(1) 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 written 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 3--505 by the close of the
bank's next banking day after it knows of the requirement.
(2) Where presentment is made by notice and neither honor nor request
for compliance with a requirement under Section 3--505 is 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 secondary party by sending him notice of the facts.

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