If the party that dishonors an instrument is a collection bank,when must the collecting bank give notice of the dishonor to a secondarily liable party?
A)Before midnight of the next banking day
B)Within 48 hours
C)Within 7 days
D)Within 10 days
E)Within 30 days

Question

Quizplus · Accepted Answer

Uniform Commercial Code Section 3-503(c)states that if the party that dishonors an instrument is a collection bank,it must give notice of the dishonor to a secondarily liable party before midnight of the next banking day.

If the Party That Dishonors an Instrument Is a Collection