400.3-502. Dishonor.

MISSOURI STATUTES AND CODES

Dishonor.

400.3-502. (a) Dishonor of a note is governed by thefollowing rules:

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

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

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

(1) If a check is duly presented for payment to the payorbank otherwise than for immediate payment over the counter, thecheck is dishonored if the payor bank makes timely return of thecheck or sends timely notice of dishonor or nonpayment underSection 400.4-301 or 400.4-302, or becomes accountable for theamount of the check under Section 400.4-302.

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

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

(4) If a draft is payable on elapse of a period of timeafter sight or acceptance, the draft is dishonored if presentmentfor acceptance is duly made and the draft is not accepted on theday of presentment.

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

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

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

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

(e) In any case in which presentment is otherwise requiredfor dishonor under this section and presentment is excused underSection 400.3-504, dishonor occurs without presentment if theinstrument is not duly accepted or paid.

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