Sec. 42a-3-503. Notice of dishonor. - Connecticut Statutes

      Sec. 42a-3-503. Notice of dishonor. (a) The obligation of an endorser stated in section 42a-3-415(a) and the obligation of a drawer stated in section 42a-3-414(d) may not be enforced unless (i) the endorser or drawer is given notice of dishonor of the instrument complying with this section or (ii) notice of dishonor is excused under section 42a-3-504(b).

      (b) Notice of dishonor may be given by any person; may be given by any commercially reasonable means, including an oral, written, or electronic communication; and is sufficient if it reasonably identifies the instrument and indicates that the instrument has been dishonored or has not been paid or accepted. Return of an instrument given to a bank for collection is sufficient notice of dishonor.

      (c) Subject to section 42a-3-504(c), with respect to an instrument taken for collection by a collecting bank, notice of dishonor must be given (i) by the bank before midnight of the next banking day following the banking day on which the bank receives notice of dishonor of the instrument, or (ii) by any other person within thirty days following the day on which the person receives notice of dishonor. With respect to any other instrument, notice of dishonor must be given within thirty days following the day on which dishonor occurs.

      (1959, P.A. 133, S. 3-503; P.A. 91-304, S. 60.)

      History: P.A. 91-304 entirely replaced former provisions re time of presentment with provisions re notice of dishonor, a restatement of Secs. 42a-3-501(2)(a) and 42a-3-508(1), (2), (3) and (8), revised to 1991.

      Annotations to former statutes:

      (1958 Rev., S. 39-72): Reasonableness of time of demand depends partly on circumstances. 18 C. 361. Is affected by intention and understanding of parties. 31 C. 273. Giving of security and agreement to pay interest are material. 45 C. 253. Note payable thirty days after demand. 65 C. 471. One providing for semiannual payment of interest. 71 C. 39. What is reasonable time is question of fact. 74 C. 304; 78 C. 267. Prior statute. 75 C. 431; 78 C. 267. Waiver of presentment by endorser. Id. Effect of making note payable "on demand after date"; as between parties, it is due at once and suit can be brought immediately. 84 C. 54. Where entire note may be accelerated at holder's option if installment is unpaid when due, holder may exercise option within reasonable time, and endorser's liability will be fixed by presentment on day that option is exercised, with due notice of dishonor. 111 C. 571. Requirement that demand note be presented within reasonable time does not change maturity date of note but fixes time within which presentment must be made to charge endorser. 116 C. 560. Where the instrument is not payable on demand, presentment must be made on the day it falls due. 144 C. 412.

      Cited. 5 CS 18.

      (1958 Rev., S. 39-87): The time of payment is determined by excluding the day from which the time was to begin to run and by including the date of payment. 144 C. 412.

      Annotation to present section:

      Former Subsec. (2):

      Subdiv. (a) cited. 186 C. 618.