(a) The obligation of an indorser stated in Section 36-3-415(a) and the obligation of a drawer stated in Section 36-3-414(d) may not be enforced unless (i) the indorser or drawer is given notice of dishonor of the instrument complying with this section or (ii) notice of dishonor is excused under Section 36-3-504(b).
(b) Notice of dishonor may be given by any person; may be given by any commercially reasonable means, including an oral, written, or electronic communication; and is sufficient if it reasonably identifies the instrument and indicates that the instrument has been dishonored or has not been paid or accepted. Return of an instrument given to a bank for collection is sufficient notice of dishonor.
(c) Subject to Section 36-3-504(c), with respect to an instrument taken for collection by a collecting bank, notice of dishonor must be given (i) by the bank before midnight of the next banking day following the banking day on which the bank receives notice of dishonor of the instrument, or (ii) by any other person within 30 days following the day on which the person receives notice of dishonor. With respect to any other instrument, notice of dishonor must be given within 30 days following the day on which dishonor occurs.
HISTORY: 1962 Code Section 10.3-503; 1966 (54) 2716; 2008 Act No. 204, Section 2, eff July 1, 2008.
Structure South Carolina Code of Laws
Chapter 3 - Commercial Code - Negotiable Instruments
Section 36-3-101. Short title.
Section 36-3-102. Subject matter.
Section 36-3-103. Definitions.
Section 36-3-104. Negotiable instrument.
Section 36-3-105. Issue of instrument.
Section 36-3-106. Unconditional promise or order.
Section 36-3-107. Instrument payable in foreign money.
Section 36-3-108. Payable on demand or at definite time.
Section 36-3-109. Payable to bearer or order.
Section 36-3-110. Identification of person to whom instrument is payable.
Section 36-3-111. Place of payment.
Section 36-3-113. Date of instrument.
Section 36-3-114. Contradictory terms of instrument.
Section 36-3-115. Incomplete instrument.
Section 36-3-116. Joint and several liability; contribution.
Section 36-3-117. Other agreements affecting instrument.
Section 36-3-118. Statute of limitations.
Section 36-3-119. Notice of right to defend action.
Section 36-3-120 to 36-3-122. Omitted by 2008 Act No. 204, Section 2, eff July 1, 2008.
Section 36-3-201. Negotiation.
Section 36-3-202. Negotiation subject to rescission.
Section 36-3-203. Transfer of instrument; rights acquired by transfer.
Section 36-3-204. Indorsement.
Section 36-3-205. Special indorsement; blank indorsement; anomalous indorsement.
Section 36-3-206. Restrictive endorsements.
Section 36-3-207. Reacquisition.
Section 36-3-208. Omitted by 2008 Act No. 204, Section 2, eff July 1, 2008.
Section 36-3-301. Person entitled to enforce instrument.
Section 36-3-302. Holder in due course.
Section 36-3-303. Value and consideration.
Section 36-3-304. Overdue instrument.
Section 36-3-305. Defenses and claims in recoupment.
Section 36-3-306. Claims to instrument.
Section 36-3-307. Notice of breach of fiduciary duty.
Section 36-3-308. Proof of signatures and status as holder in due course.
Section 36-3-309. Enforcement of lost, destroyed, or stolen instrument.
Section 36-3-310. Effect on obligation when instrument taken.
Section 36-3-311. Accord and satisfaction by use of instrument.
Section 36-3-312. Lost, destroyed, or stolen cashier's check, teller's check, or certified check.
Section 36-3-402. Signature by representative.
Section 36-3-403. Unauthorized signature.
Section 36-3-404. Imposters; fictitious payees.
Section 36-3-405. Employer's responsibility for fraudulent indorsement by employee.
Section 36-3-406. Negligence contributing to forged signature or alteration of instrument.
Section 36-3-408. Drawee not liable on unaccepted draft.
Section 36-3-409. Acceptance of draft; certified check.
Section 36-3-410. Acceptance varying draft.
Section 36-3-411. Refusal to pay cashier's check, teller's check, and certified check.
Section 36-3-412. Obligation of issuer of note or cashier's check.
Section 36-3-413. Obligation of acceptor.
Section 36-3-414. Obligation of drawer.
Section 36-3-415. Obligation of indorser.
Section 36-3-416. Transfer warranties.
Section 36-3-417. Presentment warranties.
Section 36-3-418. Payment for acceptance by mistake.
Section 36-3-419. Instrument signed for accommodation.
Section 36-3-420. Conversion of instrument.
Section 36-3-501. Presentment.
Section 36-3-503. Notice of dishonor.
Section 36-3-504. Excused presentment and notice of dishonor.
Section 36-3-505. Evidence of dishonor.
Section 36-3-506 to 36-3-511. Omitted by 2008 Act No. 204, Section 2, eff July 1, 2008.
Section 36-3-601. Discharge and effect of discharge.
Section 36-3-603. Tender of payment.
Section 36-3-604. Discharge by cancellation or renunciation.
Section 36-3-605. Discharge of secondary obligors.
Section 36-3-606. Omitted by 2008 Act 204, Section 2, eff July 1, 2008.
Section 36-3-701. Omitted by 2008 Act No. 204, Section 2, eff July 1, 2008.
Section 36-3-801 to 36-3-805. Omitted by 2008 Act No. 204, Section 2, eff July 1, 2008.