California · Commercial Code

COM §4501: 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 c

What this law says, in plain English

A bank collecting a documentary draft must present it for payment or acceptance and take action upon learning the draft was not paid or accepted.

Read the full statutory text

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.

Verify at the official source: California legislative text

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