(a) "Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument (i) to pay the instrument made to the drawee or a party obliged to pay the instrument or, in the case of a note or accepted draft payable at the bank, to the bank, or (ii) to accept a draft made to the drawee.

(b) The following rules are subject to Article 4, agreement of the parties, and clearing-house rules and the like:

(1) Presentment may be made at the place of payment of the instrument and must be made at the place of payment if the instrument is payable at a bank in the United States; may be made by any commercially reasonable means, including an oral, written, or electronic communication; is effective when the demand for payment or acceptance is received by the person to whom presentment is made; and is effective if made to any one of two or more makers, acceptors, drawees, or other payors.

(2) Upon demand of the person to whom presentment is made, the person making presentment must (i) exhibit the instrument, (ii) give reasonable identification and, if presentment is made on behalf of another person, reasonable evidence of authority to do so, and (iii) sign a receipt for the instrument for any payment made or surrender the instrument if full payment is made.

(3) Without dishonoring the instrument, the party to whom presentment is made may (i) return the instrument for lack of a necessary indorsement, or (ii) refuse payment or acceptance for failure of the presentment to comply with the terms of the instrument, an agreement of the parties, or other applicable law or rule.

(4) The party to whom presentment is made may treat presentment as occurring on the next business day after the day of presentment if the party to whom presentment is made has established a cut-off hour not earlier than 2:00 p.m. for the receipt and processing of instruments presented for payment or acceptance and presentment is made after the cut-off hour.

History: 1978 Comp., § 55-3-501, enacted by Laws 1992, ch. 114, § 146.

OFFICIAL COMMENTS

UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.

Subsection (a) defines presentment. Subsection (b)(1) states the place and manner of presentment. Electronic presentment is authorized. The communication of the demand for payment or acceptance is effective when received. Subsection (b)(2) restates former Section 3-505. Subsection (b)(2)(i) allows the person to whom presentment is made to require exhibition of the instrument, unless the parties have agreed otherwise as in an electronic presentment agreement. Former Section 3-507(3) [repealed] is the antecedent of Subsection (b)(3)(i). Since a payor must decide whether to pay or accept on the day of presentment, Subsection (b)(4) allows the payor to set a cut-off hour for receipt of instruments presented.

Repeals. — Laws 1992, ch. 114, § 237 repealed former 55-3-501 NMSA 1978, as enacted by Laws 1961, ch. 96, § 3-501, relating to when presentment, notice of dishonor and protest necessary or permissible, effective July 1, 1992. Laws 1992, ch. 114, § 146, enacted a new section, effective July 1, 1992. For provisions of former section, see the 1991 NMSA 1978 on NMOneSource.com.

Law reviews. — For article, "Essential Attributes of Commercial Paper - Part I," see 1 N.M. L. Rev. 479 (1971).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 11 Am. Jur. 2d Bills and Notes §§ 167, 187, 743, 744, 753, 789, 790, 883 to 887, 897; 12 Am. Jur. 2d Bills and Notes § 1225.

Who must bear loss of funds from failure of bank, at which bill or note is payable, during delay in presenting it, 2 A.L.R. 1381.

Duty of collecting bank as to notices of protest or dishonor which it receives from its correspondent, 4 A.L.R. 534.

Necessity of protest and notice as between coendorsers of negotiable paper, 9 A.L.R. 1188, 32 A.L.R. 190.

Stopping payment as affecting necessity of presentment of check, 14 A.L.R. 562.

Duty of holder of note containing endorsement in form of guaranty, to make demand for payment and give notice of nonpayment, 21 A.L.R. 1390, 33 A.L.R. 97, 46 A.L.R. 1516.

When instrument deemed payable at a "special place" within provision making willingness and ability to pay at such place equivalent to tender, 24 A.L.R. 1050.

Validity and effect of agreement to give bank all, or part, of fees of notary for protesting paper, 25 A.L.R. 170.

Insolvency or bankruptcy of party primarily liable on commercial paper, as excusing demand and notice of dishonor, 25 A.L.R. 962, 87 A.L.R. 1394.

Right of notary who protests paper to change or contradict his certificate, 28 A.L.R. 543.

Effect of delay in presentation of check given for payment of taxes, 44 A.L.R. 1236, 124 A.L.R. 1155.

Duty of holder as regards presentation of check to drawee bank as affected by run on bank or other indications of impending closing of doors, 88 A.L.R. 479.

Time within which check must be presented to prevent discharge of drawer in event of bank's insolvency, 91 A.L.R. 1181.

Necessity of notice of nonpayment of note or bill upon which corporation is primary obligor, in order to hold officer, director or stockholder as endorser, 123 A.L.R. 1367.

Duties of collecting bank with respect to presenting draft or bill of exchange for acceptance, 39 A.L.R.2d 1296.

Pledgee's liability for failure to make demand, 45 A.L.R.3d 248.

10 C.J.S. Bills and Notes § 202 et seq.