1. 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 554.3501 by the close of the bank's next banking day after it knows of the requirement.
2. If presentment is made by notice and payment, acceptance, or request for compliance with a requirement under section 554.3501 is 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 endorser by sending it notice of the facts.
[C73, § 2094; C97, §3053; S13, § 3053; C24, 27, 31, 35, 39, §9545; C46, 50, 54, 58, 62, § 541.85; C66, 71, 73, 75, 77, 79, 81, §554.4210]
94 Acts, ch 1167, §97 ~IC95, §554.4212
Referred to in § 554.3504
*Uniform Act states "not received"; corrective legislation is pending ~I1994 amendments take effect July 1, 1995; 94 Acts, ch 1167, §122; for law prior to July 1, 1995, see §554.4210, Code 1993 ~ISection transferred from §554.4210 and former §554.4212 transferred to §554.4214 pursuant to directive in 94 Acts, ch 1167, §120
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