N.Y. Uniform Commercial Code Law § 3-701: Letter of Advice of International Sight Draft

Section 3--701. Letter of Advice of International Sight Draft.

(1) A "letter of advice" is a drawer's communication to the drawee

that a described draft has been drawn.

(2) Unless otherwise agreed when a bank receives from another bank a

letter of advice of an international sight draft the drawee bank may

immediately debit the drawer's account and stop the running of interest

pro tanto. Such a debit and any resulting credit to any account covering

outstanding drafts leaves in the drawer full power to stop payment or

otherwise dispose of the amount and creates no trust or interest in

favor of the holder.

(3) Unless otherwise agreed and except where a draft is drawn under a

credit issued by the drawee, the drawee of an international sight draft

owes the drawer no duty to pay an unadvised draft but if it does so and

the draft is genuine, may appropriately debit the drawer's account.