Sec. 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.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967. Amended by Acts 1995, 74th Leg., ch. 921, Sec. 4, eff. Jan. 1, 1996.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Chapter 4 - Bank Deposits and Collections
Subchapter E. Collection of Documentary Drafts
Section 4.501. Handling of Documentary Drafts; Duty to Send for Presentment and to Notify Customer of Dishonor
Section 4.502. Presentment of "On Arrival" Drafts
Section 4.504. Privilege of Presenting Bank to Deal With Goods; Security Interest for Expenses