(a) 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 record providing 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 55-3-501 NMSA 1978 by the close of the bank's next banking day after it knows of the requirement.

(b) If presentment is made by notice and payment, acceptance or request for compliance with a requirement under Section 55-3-501 NMSA 1978 is not 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 indorser by sending it notice of the facts.

History: 1953 Comp., § 50A-4-210, enacted by Laws 1961, ch. 96, § 4-210; 1978 Comp., § 55-4-210, recompiled as 1978 Comp., § 55-4-212 by Laws 1992, ch. 114, § 178; 2009, ch. 234, § 14.

OFFICIAL COMMENTS

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

1. This section codifies a practice extensively followed in presentation of trade acceptances and documentary and other drafts drawn on nonbank payors. It imposes a duty on the payor to respond to the notice of the item if the item is not to be considered dishonored. Notice of such a dishonor charges drawers and indorsers. Presentment under this section is good presentment under Article 3. See Section 3-501 [55-3-501 NMSA 1978].

2. A drawee not receiving notice is not, of course, liable to the drawer for wrongful dishonor.

3. A bank so presenting an instrument must be sufficiently close to the drawee to be able to exhibit the instrument on the day it is requested to do so or the next business day at the latest.

Recompilations. — Laws 1992, ch. 114, § 180 recompiled former 55-4-212 NMSA 1978, relating to right of charge-back or refund, as 55-4-214 NMSA 1978, effective July 1, 1992.

The 2009 amendment, effective January 1, 2010, in Subsection (a), after "accept or pay a", deleted "written" and added "record".

The 1992 amendment, effective July 1, 1992, substituted "drawer or indorser" for "secondary parties" in the section catchline; substituted letters for numbers in the subsection designations; in Subsection (b), substituted "payment, acceptance or request" for "honor nor payment" near the beginning of the subsection, and substituted "drawer or indorser" for "secondary party" near the end of the subsection; and made section reference substitutions and minor stylistic changes throughout the section.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 10 Am. Jur. 2d Banks § 710.

9 C.J.S. Banks and Banking § 408 et seq.