If a draft or the relevant instructions require presentment "on arrival", "when goods arrive" or the like, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal to pay or accept because the goods have not arrived is not dishonor; the bank must notify its transferor of the refusal but need not present the draft again until it is instructed to do so or learns of the arrival of the goods.

HISTORY: 1962 Code Section 10.4-502; 1966 (54) 2716; 2008 Act No. 204, Section 3, eff July 1, 2008. Definitional Cross References: "Bank" Section 36-4-105(1) "Collecting bank" Section 36-4-105(5) "Draft" Section 36-4-104(a)(7) "Reasonable time" Section 36-1-204(2) [see now Section 36-1-205]