N.Y. Uniform Commercial Code Law § 4-501: Handling of Documentary Drafts; Duty to Send for Presentment and to Notify Customer of Dishonor

Section 4--501. Handling of Documentary Drafts; Duty to Send for

Presentment and to Notify Customer of Dishonor.

A bank which takes a documentary draft for collection must 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 must

seasonably notify its customer of such fact even though it may have

discounted or bought the draft or extended credit available for

withdrawal as of right.