If the party that dishonors an instrument is a collecting bank, when must notice of the dishonor be given to a secondarily liable party by the collecting bank?

Question

Quizplus · Accepted Answer

The Uniform Commercial Code (UCC) specifies that a collecting bank must give notice of dishonor before midnight of the next banking day following the day on which the bank receives notice of dishonor or becomes aware of the dishonor. This ensures timely communication and allows parties to take appropriate actions.

If the Party That Dishonors an Instrument Is a Collecting