Sec. 42a-3-502. Dishonor. - Connecticut Statutes

      Sec. 42a-3-502. Dishonor. (a) Dishonor of a note is governed by the following rules:

      (1) If the note is payable on demand, the note is dishonored if presentment is duly made to the maker and the note is not paid on the day of presentment.

      (2) If the note is not payable on demand and is payable at or through a bank or the terms of the note require presentment, the note is dishonored if presentment is duly made and the note is not paid on the day it becomes payable or the day of presentment, whichever is later.

      (3) If the note is not payable on demand and paragraph (2) does not apply, the note is dishonored if it is not paid on the day it becomes payable.

      (b) Dishonor of an unaccepted draft other than a documentary draft is governed by the following rules:

      (1) If a check is duly presented for payment to the payor bank otherwise than for immediate payment over the counter, the check is dishonored if the payor bank makes timely return of the check or sends timely notice of dishonor or nonpayment under section 42a-4-301 or 42a-4-302, or becomes accountable for the amount of the check under section 42a-4-302.

      (2) If a draft is payable on demand and paragraph (1) does not apply, the draft is dishonored if presentment for payment is duly made to the drawee and the draft is not paid on the day of presentment.

      (3) If a draft is payable on a date stated in the draft, the draft is dishonored if (i) presentment for payment is duly made to the drawee and payment is not made on the day the draft becomes payable or the day of presentment, whichever is later, or (ii) presentment for acceptance is duly made before the day the draft becomes payable and the draft is not accepted on the day of presentment.

      (4) If a draft is payable on elapse of a period of time after sight or acceptance, the draft is dishonored if presentment for acceptance is duly made and the draft is not accepted on the day of presentment.

      (c) Dishonor of an unaccepted documentary draft occurs according to the rules stated in subsection (b)(2), (3) and (4), except that payment or acceptance may be delayed without dishonor until no later than the close of the third business day of the drawee following the day on which payment or acceptance is required by those paragraphs.

      (d) Dishonor of an accepted draft is governed by the following rules:

      (1) If the draft is payable on demand, the draft is dishonored if presentment for payment is duly made to the acceptor and the draft is not paid on the day of presentment.

      (2) If the draft is not payable on demand, the draft is dishonored if presentment for payment is duly made to the acceptor and payment is not made on the day it becomes payable or the day of presentment, whichever is later.

      (e) In any case in which presentment is otherwise required for dishonor under this section and presentment is excused under section 42a-3-504, dishonor occurs without presentment if the instrument is not duly accepted or paid.

      (f) If a draft is dishonored because timely acceptance of the draft was not made and the person entitled to demand acceptance consents to a late acceptance, from the time of acceptance the draft is treated as never having been dishonored.

      (1959, P.A. 133, S. 3-502; P.A. 91-304, S. 59.)

      History: P.A. 91-304 entirely replaced former provisions re unexcused delay and discharge with provisions re dishonor, a restatement in part of Secs. 42a-3-507(1) and 42a-3-511(4), revised to 1991.

      See Sec. 42a-3-415(e) for successor provisions to Sec. 42a-3-502(1)(a), revised to 1991, re discharge of endorser for undue delay.

      See Sec. 42a-3-414(f) for successor provisions to Sec. 42a-3-502(1)(b), revised to 1991, re discharge of drawer deprived of funds due to undue delay.

      Annotations to former statute (1958 Rev., S. 39-187):

      Drawer of check not discharged from all liability thereon by failure to present within reasonable time, but only to extent of loss caused by delay. 110 C. 397. Cited. 122 C. 170.

      Not unreasonable delay where holder takes check ten days after date of issue and presents it for payment the following day. 18 CS 16.