South Dakota Codified Laws
Chapter 04 - Bank Deposits And Collections
Section 57A-4-501 - Handling of documentary drafts; Duty to send for presentment and to notify customer of dishonor.

57A-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.

Source: SL 1994, ch 368, ยง4-501.

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Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 57A - Uniform Commercial Code

Chapter 04 - Bank Deposits And Collections

Section 57A-4-101 - Short title.

Section 57A-4-102 - Applicability.

Section 57A-4-103 - Variation by agreement--Measure of damages--Certain action constituting ordinary care.

Section 57A-4-104 - Definitions and index of definitions.

Section 57A-4-105 - "Bank"--"Collecting bank"--"Depositary bank"--"Intermediary bank"--"Payor bank"--"Presenting bank".

Section 57A-4-106 - Payable through or payable at bank--Collecting bank.

Section 57A-4-107 - Separate office of a bank.

Section 57A-4-108 - Time of receipt of items.

Section 57A-4-109 - Delays.

Section 57A-4-110 - Electronic presentment.

Section 57A-4-111 - Statute of limitations.

Section 57A-4-201 - Status of collecting bank as agent and provisional status of credits--Applicability of chapter--Item indorsed "pay any bank".

Section 57A-4-202 - Responsibility for collection or return--When action timely.

Section 57A-4-203 - Effect of instructions.

Section 57A-4-204 - Methods of sending and presenting--Sending directly to payor bank.

Section 57A-4-205 - Depositary bank holder of unendorsed item.

Section 57A-4-206 - Transfer between banks.

Section 57A-4-207 - Transfer warranties.

Section 57A-4-208 - Presentment warranties.

Section 57A-4-209 - Encoding and retention warranties.

Section 57A-4-210 - Security interest of collecting bank in items, accompanying documents, and proceeds.

Section 57A-4-211 - When bank gives value for purposes of holder in due course.

Section 57A-4-212 - Presentment by notice of item not payable by, through, or at a bank--Liability of drawer or indorser.

Section 57A-4-213 - Medium and time of settlement by bank.

Section 57A-4-214 - Right of charge-back or refund; Liability of collecting bank; Return of item.

Section 57A-4-215 - Final payment of item by payor bank--When provisional debits and credits become final--When certain credits become available for withdrawal.

Section 57A-4-216 - Insolvency and preference.

Section 57A-4-301 - Deferred posting--Recovery of payment by return of items--Time of dishonor--Return of items by payor bank.

Section 57A-4-302 - Payor bank's responsibility for late return of item.

Section 57A-4-303 - When items subject to notice, stop-payment order, legal process, or setoff--Order in which items may be charged or certified.

Section 57A-4-401 - When bank may charge customer's account.

Section 57A-4-402 - Bank's liability to customer for wrongful dishonor--Time of determining insufficiency of account.

Section 57A-4-403 - Customer's right to stop payment--Burden of proof of loss.

Section 57A-4-404 - Bank not obligated to pay check more than six months old.

Section 57A-4-405 - Death or incompetence of customer.

Section 57A-4-406 - Customer's duty to discover and report unauthorized signature or alteration.

Section 57A-4-407 - Payor bank's right to subrogation on improper payment.

Section 57A-4-501 - Handling of documentary drafts; Duty to send for presentment and to notify customer of dishonor.

Section 57A-4-502 - Presentment of "on arrival" drafts.

Section 57A-4-503 - Responsibility of presenting bank for documents and goods--Report of reasons for dishonor--Referee in case of need.

Section 57A-4-504 - Privilege of presenting bank to deal with goods--Security interest for expenses.