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Texas Business & Commerce Code - Section 4.501. Handling Of Documentary Drafts; Duty To Send For Presentment And To Notify Customer Of Dishonor

Legal Research Home > Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 4.501. Handling Of Documentary Drafts; Duty To Send For Presentment And To Notify Customer Of Dishonor

§ 4.501. HANDLING OF DOCUMENTARY DRAFTS;  DUTY TO SEND FOR 
PRESENTMENT AND TO NOTIFY CUSTOMER OF DISHONOR.  A bank that takes 
a documentary draft for collection shall present or send the draft 
and accompanying documents for presentment and, upon learning that 
the draft has not been paid or accepted in due course, shall 
seasonably notify its customer of the fact even though it may have 
discounted or bought the draft or extended credit available for 
withdrawal as of right.

Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.  
Amended by Acts 1995, 74th Leg., ch. 921, § 4, eff. Jan. 1, 1996.

Last modified: August 10, 2007