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Can you summarize IACO 554.3503?
UNIFORM COMMERCIAL CODE > Notice of dishonor.
Short Summary
This legal document, governed by the Iowa Code, specifically the Uniform Commercial Code, pertains to the obligation of an endorser and drawer and the requirement of notice of dishonor. It states that the obligation of an endorser or drawer cannot be enforced unless they are given notice of dishonor complying with the provisions of this section, or if notice of dishonor is excused under section 554.3504, subsection 2. Notice of dishonor can be given by any person through various means, such as oral, written, or electronic communication, as long as it reasonably identifies the instrument and indicates that it has been dishonored or not paid or accepted. Return of an instrument given to a bank for collection is considered sufficient notice of dishonor. The document also specifies the timeframes within which notice of dishonor must be given, depending on whether the instrument is taken for collection by a collecting bank or any other instrument. No specific penalties are mentioned in this document.
Whom does it apply to?
Endorsers and drawers of instruments
What does it govern?
Obligation of an endorser and drawer, notice of dishonor
What are exemptions?
Notice of dishonor is excused under section 554.3504, subsection 2
What are the Penalties?
No penalties mentioned.
Jurisdiction
Iowa