70A-4-502 - Presentment of "on arrival" drafts.
70A-4-502. Presentment of "on arrival" drafts.
If a draft or the relevant instructions require presentment "on arrival," "when goods arrive"or the like, the collecting bank need not present until in its judgment a reasonable time for arrivalof the goods has expired. Refusal to pay or accept because the goods have not arrived is notdishonor; the bank must notify its transferor of the refusal but need not present the draft againuntil it is instructed to do so or learns of the arrival of the goods.
Amended by Chapter 237, 1993 General Session