Title UCC, Uniform Commercial Code

Section 3--508. Notice of Dishonor.\n (1) Notice of dishonor may be given to any person who may be liable on\nthe instrument by or on behalf of the holder or any party who has\nhimself received notice, or any other party who can be compelled to pay\nthe instrument. In addition an…

Section 3--509. Protest; Noting for Protest.\n (1) A protest is a certificate of dishonor made under the hand and\nseal of a United States consul or vice consul or a notary public or\nother person authorized to certify dishonor by the law of the place\nwhere dishonor occurs. It m…

Section 3--510. Evidence of Dishonor and Notice of Dishonor.\n The following are admissible as evidence and create a presumption of\ndishonor and of any notice of dishonor therein shown:\n (a) a document regular in form as provided in the preceding section\nwhich purports to be a…

Section 3--511. Waived or Excused Presentment, Protest or Notice of\n Dishonor or Delay Therein.\n (1) Delay in presentment, protest or notice of dishonor is excused\nwhen the party is without notice that it is due or when the delay is\ncaused by circumstances beyond his control …

Section 3--601. Discharge of Parties.\n (1) The extent of the discharge of any party from liability on an\ninstrument is governed by the sections on\n (a) payment or satisfaction (Section 3--603); or\n (b) tender of payment (Section 3--604); or\n (c) cancellation or renunciation …

Section 3--602. Effect of Discharge Against Holder in Due Course.\n No discharge of any party provided by this Article is effective\nagainst a subsequent holder in due course unless he has notice thereof\nwhen he takes the instrument.\n

Section 3--603. Payment or Satisfaction.\n (1) The liability of any party is discharged to the extent of his\npayment or satisfaction to the holder even though it is made with\nknowledge of a claim of another person to the instrument unless prior to\nsuch payment or satisfaction …

Section 3--604. Tender of Payment.\n (1) Any party making tender of full payment to a holder when or after\nit is due is discharged to the extent of all subsequent liability for\ninterest, costs and attorney's fees.\n (2) The holder's refusal of such tender wholly discharges any …

Section 3--605. Cancellation and Renunciation.\n (1) The holder of an instrument may even without consideration\ndischarge any party\n (a) in any manner apparent on the face of the instrument or the\n indorsement, as by intentionally cancelling the instrument or\n the party's sig…

Section 3--606. Impairment of Recourse or of Collateral.\n (1) The holder discharges any party to the instrument to the extent\nthat without such party's consent the holder\n (a) without express reservation of rights releases or agrees not\n to sue any person against whom the par…

Section 3--701. Letter of Advice of International Sight Draft.\n (1) A "letter of advice" is a drawer's communication to the drawee\nthat a described draft has been drawn.\n (2) Unless otherwise agreed when a bank receives from another bank a\nletter of advice of an international…

Section 3--801. Drafts in a Set.\n (1) Where a draft is drawn in a set of parts, each of which is\nnumbered and expressed to be an order only if no other part has been\nhonored, the whole of the parts constitutes one draft but a taker of any\npart may become a holder in due cours…

Section 3--802. Effect of Instrument on Obligation for Which It Is\n Given.\n (1) Unless otherwise agreed where an instrument is taken for an\nunderlying obligation\n (a) the obligation is pro tanto discharged if a bank is drawer,\n maker or acceptor of the instrument and there i…

Section 3--803. Notice to Third Party.\n Where a defendant is sued for breach of an obligation for which a\nthird person is answerable over under this Article he may give the third\nperson written notice of the litigation, and the person notified may\nthen give similar notice to …

Section 3--804. Lost, Destroyed or Stolen Instruments.\n The owner of an instrument which is lost, whether by destruction,\ntheft or otherwise, may maintain an action in his own name and recover\nfrom any party liable thereon upon due proof of his ownership, the facts\nwhich prev…

Section 3--805. Instruments Not Payable to Order or to Bearer.\n This Article applies to any instrument whose terms do not preclude\ntransfer and which is otherwise negotiable within this Article but which\nis not payable to order or to bearer, except that there can be no holder\…

Section 4--101. Short Title.\n This Article shall be known and may be cited as Uniform Commercial\nCode--Bank Deposits and Collections.\n

Section 4--102. Applicability.\n (1) To the extent that items within this Article are also within the\nscope of Articles 3 and 8, they are subject to the provisions of those\nArticles. In the event of conflict the provisions of this Article govern\nthose of Article 3 but the prov…

Section 4--103. Variation by Agreement; Measure of Damages; Certain\n Action Constituting Ordinary Care.\n (1) The effect of the provisions of this Article may be varied by\nagreement except that no agreement can disclaim a bank's responsibility\nfor its own lack of good faith or…

§ 4--104. Definitions and Index of Definitions.\n (1) In this Article unless the context otherwise requires\n (a) "Account" means any account with a bank and includes a\n checking, time, interest or savings account;\n (b) "Afternoon" means the period of a day between noon and\n m…

Section 4--105. "Depositary Bank"; "Intermediary Bank"; "Collecting\n Bank"; "Payor Bank"; "Presenting Bank"; "Remitting\n Bank".\n In this Article unless the context otherwise requires:\n (a) "Depositary bank" means the first bank to which an item is\ntransferred for collection …

Section 4--106. Separate Office of a Bank.\n A branch or separate office of a bank is a separate bank for the\npurpose of computing the time within which and determining the place at\nor to which action may be taken or notices or orders shall be given\nunder this Article and unde…

Section 4--107. Time of Receipt of Items.\n (1) For the purpose of allowing time to process items, prove balances\nand make the necessary entries on its books to determine its position\nfor the day, a bank may fix an afternoon hour of two P.M. or later as a\ncut-off hour for the …

Section 4--108. Delays.\n (1) Unless otherwise instructed, a collecting bank in a good faith\neffort to secure payment may, in the case of specific items and with or\nwithout the approval of any person involved, waive, modify or extend\ntime limits imposed or permitted by this Ac…

Section 4--109. Process of Posting.\n The "process of posting" means the usual procedure followed by a payor\nbank in determining to pay an item and in recording the payment\nincluding one or more of the following or other steps as determined by\nthe bank:\n (a) verification of a…

Section 4--201. Presumption and Duration of Agency Status of Collecting\n Banks and Provisional Status of Credits; Applicability\n of Article; Item Indorsed "Pay Any Bank".\n (1) Unless a contrary intent clearly appears and prior to the time\nthat a settlement given by a collecti…

Section 4--202. Responsibility for Collection; When Action Seasonable.\n (1) A collecting bank must use ordinary care in\n (a) presenting an item or sending it for presentment; and\n (b) sending notice of dishonor or non-payment or returning an\n item other than a documentary dra…

Section 4--203. Effect of Instructions.\n Subject to the provisions of Article 3 concerning conversion of\ninstruments (Section 3--419) and the provisions of both Article 3 and\nthis Article concerning restrictive indorsements only a collecting\nbank's transferor can give instruc…

Section 4--204. Methods of Sending and Presenting; Sending Direct to\n Payor Bank.\n (1) A collecting bank must send items by reasonably prompt method\ntaking into consideration any relevant instructions, the nature of the\nitem, the number of such items on hand, and the cost of …

Section 4--205. Supplying Missing Indorsement; No Notice From Prior\n Indorsement.\n (1) A depositary bank which has taken an item for collection may\nsupply any indorsement of the customer which is necessary to title\nunless the item contains the words "payee's indorsement requi…

Section 4--206. Transfer Between Banks.\n Any agreed method which identifies the transferor bank is sufficient\nfor the item's further transfer to another bank.\n

Section 4--207. Warranties of Customer and Collecting Bank on Transfer\n or Presentment of Items; Time for Claims.\n (1) Each customer or collecting bank who obtains payment or acceptance\nof an item and each prior customer and collecting bank warrants to the\npayor bank or other…

Section 4--208. Security Interest of Collecting Bank in Items,\n Accompanying Documents and Proceeds.\n (1) A bank has a security interest in an item and any accompanying\ndocuments or the proceeds of either\n (a) in case of an item deposited in an account to the extent to\n whic…

Section 4--209. When Bank Gives Value for Purposes of Holder in Due\n Course.\n For purposes of determining its status as a holder in due course, the\nbank has given value to the extent that it has a security interest in an\nitem provided that the bank otherwise complies with the…

Section 4--210. Presentment by Notice of Item Not Payable by, Through or\n at a Bank; Liability of Secondary Parties.\n (1) Unless otherwise instructed, a collecting bank may present an item\nnot payable by, through or at a bank by sending to the party to accept\nor pay a written…

Section 4--211. Media of Remittance; Provisional and Final Settlement in\n Remittance Cases.\n (1) A collecting bank may take in settlement of an item\n (a) a check of the remitting bank or of another bank on any bank\n except the remitting bank; or\n (b) a cashier's check or sim…

Section 4--212. Right of Charge-Back or Refund.\n (1) If a collecting bank has made provisional settlement with its\ncustomer for an item and itself fails by reason of dishonor, suspension\nof payments by a bank or otherwise to receive a settlement for the item\nwhich is or becom…

Section 4--213. Final Payment of Item by Payor Bank; When Provisional\n Debits and Credits Become Final; When Certain Credits\n Become Available for Withdrawal.\n (1) An item is finally paid by a payor bank when the bank has done any\nof the following, whichever happens first:\n …

Section 4--214. Insolvency and Preference.\n (1) Any item in or coming into the possession of a payor or collecting\nbank which suspends payment and which item is not finally paid shall be\nreturned by the receiver, trustee or agent in charge of the closed bank\nto the presenting…

Section 4--301. Deferred Posting; Recovery of Payment by Return of\n Items; Time of Dishonor.\n (1) Where an authorized settlement for a demand item (other than a\ndocumentary draft) received by a payor bank otherwise than for immediate\npayment over the counter has been made bef…

Section 4--302. Payor Bank's Responsibility for Late Return of Item.\n In the absence of a valid defense such as breach of a presentment\nwarranty (subsection (1) of Section 4--207), settlement effected or the\nlike, if an item is presented on and received by a payor bank the ban…

Section 4--303. When Items Subject to Notice, Stop-Order, Legal Process\n or Setoff; Order in Which Items May Be Charged or\n Certified.\n (1) Any knowledge, notice or stop-order received by, legal process\nserved upon or setoff exercised by a payor bank, whether or not\neffectiv…

Section 4--401. When Bank May Charge Customer's Account.\n (1) As against its customer, a bank may charge against his account any\nitem which is otherwise properly payable from that account even though\nthe charge creates an overdraft.\n (2) A bank which in good faith makes payme…

Section 4--402. Bank's Liability to Customer for Wrongful Dishonor.\n A payor bank is liable to its customer for damages proximately caused\nby the wrongful dishonor of an item. When the dishonor occurs through\nmistake liability is limited to actual damages proved. If so proxima…

Section 4--403. Customer's Right to Stop Payment; Burden of Proof of\n Loss.\n (1) A customer may by order to his bank stop payment of any item\npayable for his account but the order must be received at such time and\nin such manner as to afford the bank a reasonable opportunity …

Section 4--404. Bank Not Obligated to Pay Check More Than Six Months\n Old.\n A bank is under no obligation to a customer having a checking account\nto pay a check, other than a certified check, which is presented more\nthan six months after its date, but it may charge its custom…

Section 4--405. Death or Incompetence of Customer.\n (1) A payor or collecting bank's authority to accept, pay or collect\nan item or to account for proceeds of its collection if otherwise\neffective is not rendered ineffective by incompetence of a customer of\neither bank existi…

Section 4--406. Customer's Duty to Discover and Report Unauthorized\n Signature or Alteration.\n (1) When a bank sends to its customer a statement of account\naccompanied by items paid in good faith in support of the debit entries\nor holds the statement and items pursuant to a r…

Section 4--407. Payor Bank's Right to Subrogation on Improper Payment.\n If a payor bank has paid an item over the stop payment order of the\ndrawer or maker or otherwise under circumstances giving a basis for\nobjection by the drawer or maker, to prevent unjust enrichment and on…

Section 4--408. Rights and Liabilities of Remitter or Payee With Respect\n to Cashier's Check, Teller's Check and Certified\n Check.\n (1) This section applies if a cashier's check, teller's check or\ncertified check is not presented for payment on or before ninety days\nfrom the…