South Dakota Codified Laws 57A-4-501. Handling of documentary drafts; Duty to send for presentment and to notify customerof dishonor
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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.
Terms Used In South Dakota Codified Laws 57A-4-501
- Customer: means a person having an account with a bank or for whom a bank has agreed to collect items, including a bank that maintains an account at another bank. See South Dakota Codified Laws 57A-4-104
- Documentary draft: means a draft to be presented for acceptance or payment if specified documents, certificated securities (§. See South Dakota Codified Laws 57A-4-104
- Draft: means a draft as defined in §. See South Dakota Codified Laws 57A-4-104
Source: SL 1994, ch 368, § 4-501.