8.3A-503 - A-503. Notice of dishonor. - Virginia Statutes

§ 8.3A-503. Notice of dishonor.

(a) The obligation of an endorser stated in § 8.3A-415 (a) and the obligationof a drawer stated § 8.3A-414 (d) may not be enforced unless (i) the endorseror drawer is given notice of dishonor of the instrument complying with thissection or (ii) notice of dishonor is excused under § 8.3A-504 (b).

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

(c) Subject to § 8.3A-504 (c), with respect to an instrument taken forcollection by a collecting bank, notice of dishonor must be given (i) by thebank before midnight of the next banking day following the banking day onwhich the bank receives notice of dishonor of the instrument, or (ii) by anyother person within thirty days following the day on which the personreceives notice of dishonor. With respect to any other instrument, notice ofdishonor must be given within thirty days following the day on which dishonoroccurs.

(Code 1950, §§ 6-443 through 6-461, 6-471, 6-496, 6-505; 1964, c. 219, §§8.3-501, 8.3-508; 1992, c. 693.)