N.Y. Uniform Commercial Code Law § 3-507: Dishonor; Holder's Right of Recourse; Term Allowing Re-Presentment

Section 3--507. Dishonor; Holder's Right of Recourse; Term Allowing

Re-Presentment.

(1) An instrument is dishonored when

(a) a necessary or optional presentment is duly made and due

acceptance or payment is refused or cannot be obtained within

the prescribed time or in case of bank collections the

instrument is seasonably returned by the midnight deadline

(Section 4--301); or

(b) presentment is excused and the instrument is not duly

accepted or paid.

(2) Subject to any necessary notice of dishonor and protest, the

holder has upon dishonor an immediate right of recourse against the

drawers and indorsers.

(3) Return of an instrument for lack of proper indorsement is not

dishonor.

(4) A term in a draft or an indorsement thereof allowing a stated time

for re-presentment in the event of any dishonor of the draft by

nonacceptance if a time draft or by nonpayment if a sight draft gives

the holder as against any secondary party bound by the term an option to

waive the dishonor without affecting the liability of the secondary

party and he may present again up to the end of the stated time.