Arizona Revised Statutes § 47-4212 Presentment By Notice Of Item Not Payable By, Through Or At A Bank; Liability Of Drawer Or Indorser

47-4212. Presentment by notice of item not payable by, through or at a bank; liability of drawer or indorser

A. Unless otherwise instructed, a collecting bank may present an item not payable by, through or at a bank by sending to the party to accept or pay a written notice that the bank holds the item for acceptance or payment. The notice must be sent in time to be received on or before the day when presentment is due and the bank must meet any requirement of the party to accept or pay under section 47-3501 by the close of the bank's next banking day after it knows of the requirement.

B. If presentment is made by notice and payment, acceptance or request for compliance with a requirement under section 47-3501 is not received by the close of business on the day after maturity or, in the case of demand items, by the close of business on the third banking day after notice was sent, the presenting bank may treat the item as dishonored and charge any drawer or indorser by sending it notice of the facts.

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Last modified: October 13, 2016