Excused Presentment and Notice of Dishonor

1. Law
2. Georgia Code
3. Commercial Code
4. Negotiable Instruments
5. Dishonor
6. Excused Presentment and Notice of Dishonor

1. Presentment for payment or acceptance of an instrument is excused if (i) the person entitled to present the instrument cannot with reasonable diligence make presentment; (ii) the maker or acceptor has repudiated an obligation to pay the instrument, is dead, or is in insolvency proceedings; (iii) by the terms of the instrument, presentment is not necessary to enforce the obligation of indorsers or the drawer; (iv) the drawer or indorser whose obligation is being enforced has waived presentment or otherwise has no reason to expect or right to require that the instrument be paid or accepted; or (v) the drawer instructed the drawee not to pay or accept the draft or the drawee was not obligated to the drawer to pay the draft.
2. Notice of dishonor is excused if (i) by the terms of the instrument, notice of dishonor is not necessary to enforce the obligation of a party to pay the instrument; or (ii) the party whose obligation is being enforced waived notice of dishonor. A waiver of presentment is also a waiver of notice of dishonor.
3. Delay in giving notice of dishonor is excused if the delay was caused by circumstances beyond the control of the person giving the notice and the person giving the notice exercised reasonable diligence after the cause of the delay ceased to operate.

(Code 1981, §11-3-504, enacted by Ga. L. 1996, p. 1306, § 3.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 11 Am. Jur. 2d, Bills and Notes, § 322. 60 Am. Jur. 2d, Payment, §§ 46, 60.

C.J.S.

- 10 C.J.S., Bills and Notes, §§ 203 et seq., 244 et seq.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 3-504.

ALR.

- When statute of limitations begins to run in favor of drawer of check, 4 A.L.R. 881.

Conduct of holder of check at time of presentation for payment as affecting drawer's liability, 4 A.L.R. 1233.

Trust or preference in respect of money used to purchase exchange or to be transmitted, 16 A.L.R. 190; 57 A.L.R. 1168; 84 A.L.R. 1470; 93 A.L.R. 938; 101 A.L.R. 631.

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

Right of maker to recover payment or overpayment made by mistake to transferee of paper in good faith, 41 A.L.R. 588.

Renewal of bill or note as precluding defenses available against the original, 41 A.L.R. 963.

Delay in presenting certified or accepted check for payment as affecting liability of drawee bank, 42 A.L.R. 1138.

Bills and notes: necessity of possession and exhibition of paper at time of demand in order to make a valid presentment, 50 A.L.R. 1200.

Right of holder of certified check to preference out of assets of insolvent bank, 51 A.L.R. 1034.

Loss from insolvency of bank before presentment of bank draft, as falling upon purchaser of draft or upon subsequent holder, 56 A.L.R. 494.

Right of depositor to rescind or claim a trust in respect of a deposit because of insolvency of bank when it is made, 81 A.L.R. 1078.

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

Provisions of sales contract relating to party to bear the loss from insolvency of or breach of contract by bank through which paper representing price is routed for collection, 99 A.L.R. 1472.

Payment of depositor's debt to insolvent bank against which deposit might otherwise have been set off as affecting depositor's equivalent rights, 139 A.L.R. 723; 162 A.L.R. 1175.

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