§ 25-3-503. Notice of dishonor. - North Carolina Statutes

§25‑3‑503.  Notice of dishonor.

(a)        The obligation ofan indorser stated in G.S. 25‑3‑415(a) and the obligation of adrawer stated in G.S. 25‑3‑414(d) may not be enforced unless (i)the indorser or drawer is given notice of dishonor of the instrument complyingwith this section or (ii) notice of dishonor is excused under G.S. 25‑3‑504(b).

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

(c)        Subject to G.S. 25‑3‑504(c),with respect to an instrument taken for collection by a collecting bank, noticeof dishonor must be given (i) by the bank before midnight of the next bankingday following the banking day on which the bank receives notice of dishonor ofthe instrument, or (ii) by any other person within 30 days following the day onwhich the person receives notice of dishonor. With respect to any otherinstrument, notice of dishonor must be given within 30 days following the dayon which dishonor occurs. (1899, c. 733, ss. 70, 89 to 108, 118, 129, 143, 144,150 to 153, 158, 186; Rev., ss. 2219, 2239 to 2258, 2268, 2279, 2293, 2294,2300 to 2303, 2308, 2336; C.S., ss. 3051, 3071 to 3090, 3100, 3111, 3125, 3126,3132 to 3135, 3140, 3168; 1965, c. 700, s. 1; 1967, c. 562, s. 1; 1995, c. 232,s. 1.)