70A-3-503 - Notice of dishonor. - Utah Statutes

70A-3-503. Notice of dishonor.
(1) The obligation of an indorser stated in Subsection 70A-3-415(1) and the obligation ofa drawer stated in Subsection 70A-3-414(4) may not be enforced unless the indorser or drawer isgiven notice of dishonor of the instrument complying with this section or notice of dishonor isexcused under Subsection 70A-3-504(2).
(2) Notice of dishonor may be given by any person, may be given by any commerciallyreasonable means, including an oral, written, or electronic communication, and is sufficient if itreasonably identifies the instrument and indicates that the instrument has been dishonored or hasnot been paid or accepted. Return of an instrument given to a bank for collection is sufficientnotice of dishonor.
(3) Subject to Subsection 70A-3-504(3), with respect to an instrument taken forcollection by a collecting bank, notice of dishonor must be given by the bank before midnight ofthe next banking day following the banking day on which the bank receives notice of dishonor ofthe instrument, or by any other person within 30 days following the day on which the personreceives notice of dishonor. With respect to any other instrument, notice of dishonor must begiven within 30 days following the day on which dishonor occurs.

Repealed and Re-enacted by Chapter 237, 1993 General Session