{"data":{"id":"us-ky/krs-355.3-502","jurisdiction":"us-ky","citation":"KRS 355.3-502","heading":"Dishonor.","body":"(1) Dishonor of a note is governed by the following rules:\n(a) If the note is payable on demand, the note is dishonored if presentment is duly\nmade to the maker and the note is not paid on the day of presentment.\n(b) If the note is not payable on demand and is payable at or through a bank or the\nterms of the note require presentment, the note is dishonored if presentment is\nduly made and the note is not paid on the day it becomes payable or the day of\npresentment, whichever is later.\n(c) If the note is not payable on demand and paragraph (b) of this subsection does\nnot apply, the note is dishonored if it is not paid on the day it becomes\npayable.\n(2) Dishonor of an unaccepted draft other than a documentary draft is governed by the\nfollowing rules:\n(a) If a check is duly presented for payment to the payor bank otherwise than for\nimmediate payment over the counter, the check is dishonored if the payor\nbank makes timely return of the check or sends timely notice of dishonor or\nnonpayment under KRS 355.4 -301 or 355.4 -302, or becomes accountable for\nthe amount of the check under KRS 355.4-302.\n(b) If a draft is payable on demand and paragraph (a) of this subsection does not\napply, the draft is dishonored if presentment for payment is duly made to the\ndrawee and the draft is not paid on the day of presentment.\n(c) If a draft is payable on a date stated in the draft, the draft is dishonored if:\n1. Presentment for payment is duly made to the drawee and payment is not\nmade on the day the draft becomes payable or the day of presentment,\nwhichever is later; or\n2. Presentment for acce ptance is duly made before the day the draft\nbecomes payable and the draft is not accepted on the day of presentment.\n(d) If a draft is payable on elapse of a period of time after sight or acceptance, the\ndraft is dishonored if presentment for acceptance i s duly made and the draft is\nnot accepted on the day of presentment.\n(3) Dishonor of an unaccepted documentary draft occurs according to the rules stated in\nsubsections (2)(b), (c), and (d) of this section, except that payment or acceptance\nmay be delayed without dishonor until no later than the close of the third business\nday of the drawee following the day on which payment or acceptance is required by\nthose paragraphs.\n(4) Dishonor of an accepted draft is governed by the following rules:\n(a) If the draft is payable on demand, the draft is dishonored if presentment for\npayment is duly made to the acceptor and the draft is not paid on the day of\npresentment.\n(b) If the draft is not payable on demand, the draft is dishonored if presentment\nfor payment is duly made to the acceptor and payment is not made on the day\nit becomes payable or the day of presentment, whichever is later.\n(5) In any case in which presentment is otherwise required for dishonor under this\nsection and presentment is excused un der KRS 355.3-504, dishonor occurs without\npresentment if the instrument is not duly accepted or paid.\n(6) If a draft is dishonored because timely acceptance of the draft was not made and the\nperson entitled to demand acceptance consents to a late acceptance, from the time of\nacceptance the draft is treated as never having been dishonored.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33492","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:44Z","sha256":"809635681b221c58ef8319e6e40dcf1e30c2bfee7db834c7714d2d7bb32c1d00","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.3-501","next":"us-ky/krs-355.3-503"},"notice":"GroundRules: Original legal text. Not legal advice."}