Kentucky Statutes 355.4-501 – Handling of documentary drafts — Duty to send for presentment and to notify customer of dishonor
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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.
Effective: January 1, 1997
History: Amended 1996 Ky. Acts ch. 130, sec. 108, effective January 1, 1997. — Created 1958 Ky. Acts ch. 77, sec. 4-501, effective July 1, 1960.
Effective: January 1, 1997
Terms Used In Kentucky Statutes 355.4-501
- 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 Kentucky Statutes 355.4-104
- Documentary draft: means a draft to be presented for acceptance or payment if specified documents, certificated securities (KRS §. See Kentucky Statutes 355.4-104
- Draft: means a draft as defined in KRS §. See Kentucky Statutes 355.4-104
History: Amended 1996 Ky. Acts ch. 130, sec. 108, effective January 1, 1997. — Created 1958 Ky. Acts ch. 77, sec. 4-501, effective July 1, 1960.