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Can you summarize IACO 554.3502?
UNIFORM COMMERCIAL CODE > Dishonor.
Short Summary
This legal document governs the dishonor of notes, unaccepted drafts, and accepted drafts. It provides rules for determining when a note or draft is considered dishonored. For notes payable on demand, dishonor occurs if presentment is made to the maker and the note is not paid on the day of presentment. For notes not payable on demand, dishonor occurs if presentment is made and the note is not paid on the day it becomes payable or the day of presentment, whichever is later. The document also outlines the rules for dishonor of unaccepted drafts, including checks and drafts payable on demand or on a specific date. Additionally, it addresses the dishonor of accepted drafts and provides provisions for cases where presentment is excused or late acceptance is consented to. No specific penalties are mentioned in this document.
Whom does it apply to?
Entities involved in the creation, issuance, and acceptance of notes and drafts
What does it govern?
Dishonor of notes, unaccepted drafts, and accepted drafts
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Iowa