Statute · New York Uniform Commercial Code

N.Y. U.C.C. Law § 3-507 — Dishonor; Holder's Right of Recourse; Term Allowing Re-Presentment

N.Y. U.C.C. Law § 3-507

Type: Statute
Source: New York Uniform Commercial Code
Jurisdiction: New York
Current through: Nov 5, 2026 (NY Senate Open Legislation)

Section 3--507. Dishonor; Holder's Right of Recourse; Term Allowing

Citator

N.Y. U.C.C. Law § 3-507 — Dishonor; Holder's Right of Recourse; Term Allowing Re-Presentment is in force in the current edition of the Code, and nothing recorded condemns it.

Section 3--507. Dishonor; Holder's Right of Recourse; Term Allowing

Re-Presentment.

(1) An instrument is dishonored when

(a) a necessary or optional presentment is duly made and due

acceptance or payment is refused or cannot be obtained within

the prescribed time or in case of bank collections the

instrument is seasonably returned by the midnight deadline

(Section 4--301); or

(b) presentment is excused and the instrument is not duly

accepted or paid.

(2) Subject to any necessary notice of dishonor and protest, the holder has upon dishonor an immediate right of recourse against the drawers and indorsers.

(3) Return of an instrument for lack of proper indorsement is not dishonor.

(4) A term in a draft or an indorsement thereof allowing a stated time for re-presentment in the event of any dishonor of the draft by nonacceptance if a time draft or by nonpayment if a sight draft gives the holder as against any secondary party bound by the term an option to waive the dishonor without affecting the liability of the secondary party and he may present again up to the end of the stated time.