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.

Terms Used In Arizona Laws 47-4501

  • Customer: means a person having an account with a bank or for whom a bank has agreed to collect items, including a bank that maintains an account at another bank. See Arizona Laws 47-4104
  • Documentary draft: means a draft to be presented for acceptance or payment if specified documents, certificated securities (section 47-8102) or instructions for uncertificated securities (section 47-8102) or other certificates, statements or the like are to be received by the drawee or other payor before acceptance or payment of the draft. See Arizona Laws 47-4104
  • Draft: means a draft as defined in section 47-3104 or an item, other than an instrument, that is an order. See Arizona Laws 47-4104
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