notice of dishonor-revised 1
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NOTICE OF DISHONOR Group 2
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CONCEPT
Notice of dishonor means brinin either ora!!" or in #ritin$ t%no#!ede of the dra#er or indorser of an instrument the facta speci&ed neotiab!e instrument$ upon proper proceedins thas not been accepted or has not been paid$ and that the parnoti&ed is e'pected to pa" it(
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)HEN CONSIDEREDDISHNORED* neotiab!e instrument is considered to be dishonored+
,(- if it is not accepted #hen presented for acceptance.
2(- if it is not paid #hen presented for pa"ment at maturit". o
/(- if presentment is e'cused or #ai0ed and the instrument isdue and unpaid(
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P1RPOSE
To enab!e the part" to be chared to preser0e and protect hisaainst prior parties(
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NECESSIT OF GI3INGNOTICE OF DISHONOR,( *s aainst part" primari!" !iab!e
Notice of dishonour need not be i0en to the part" primari!" !to ma%e them !iab!e because he is 0er" person #ho dishonouthe instrument( Thus$ notice need not be i0en to the ma%er
the acceptor of a bi!! of e'chane
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NECESSIT OF GI3INGNOTICE OF DISHONOR2( *s aainst part" secondari!" !iab!e
Notice of dishonour must be i0en to the dra#er and to each indorser to ma%e them
E'ceptions+ 4the dra#ers and indorsers are !iab!e e0en #ithout notice of dishonor info!!o#in cases+
a( In case of #ai0er
b( )hen notice is dispensed #ith
c( *s reards the dra#er in the fo!!o#in cases
d( *s reards the indorser in the fo!!o#in cases4/-
e( )hen notice of dishonour b" non5acceptance #as pre0ious!" i0en
f( *s reards a ho!der in due course #ithout notice(
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RE61ISITE OF NOTICE OFDISHONOR,( 7" #hom notice is i0en
2( Ho# notice is i0en
/( To #hom notice is i0en
8( )hen notice must be i0en
9( )here notice must be sent
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7 )HO: NOTICE IS GI3EN
,(- 7" the ho!der
2(- 7" another in beha!f of the ho!der
/(- 7" a part" to the instrument #ho ma" be compe!!ed to pa"the ho!der and #ho$ upon ta%in it up$ #ou!d ha0e a riht toreimbursement from the part" to #hom the notice is i0en
8(- 7" another person in beha!f of such part"
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EFFECT OF NOTICE ON7EH*
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EFFECT )HERE NOTICE IS GI3E7 P*RT ENTIT
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)HEN *GENT :* GI3ENOTICEThe aent$ in case the instrument is dishnored in his hands$ mi0e notice either to+
4,- his principa!$ or
42- direct!" to the parties secondari!" !iab!e
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CRI:IN*<
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