Tex. Bus. & Com. Code Section 4.501
Handling of Documentary Drafts; Duty to Send for Presentment and to Notify Customer of Dishonor


A bank that takes a documentary draft for collection shall present or send the draft and accompanying documents for presentment and, upon learning that the draft has not been paid or accepted in due course, shall seasonably notify its customer of the fact even though it may have discounted or bought the draft or extended credit available for withdrawal as of right.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967. Amended by Acts 1995, 74th Leg., ch. 921, Sec. 4, eff. Jan. 1, 1996.
Sec. 4.502. PRESENTMENT OF “ON ARRIVAL” DRAFTS. 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.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967. Amended by Acts 1995, 74th Leg., ch. 921, Sec. 4, eff. Jan. 1, 1996.

Source: Section 4.501 — Handling of Documentary Drafts; Duty to Send for Presentment and to Notify Customer of Dishonor, https://statutes.­capitol.­texas.­gov/Docs/BC/htm/BC.­4.­htm#4.­501 (accessed Apr. 13, 2024).

4.101
Short Title
4.102
Applicability
4.103
Variation by Agreement
4.104
Definitions and Index of Definitions
4.106
Payable Through or Payable at Bank
4.107
Separate Office of a Bank
4.108
Time of Receipt of Items
4.109
Delays
4.110
Electronic Presentment
4.111
Statute of Limitations
4.112
Payment of Check at Par
4.202
Responsibility for Collection or Return
4.203
Effect of Instructions
4.204
Methods of Sending and Presenting
4.205
Depository Bank Holder of Unindorsed Item
4.206
Transfer Between Banks
4.207
Transfer Warranties
4.208
Presentment Warranties
4.209
Encoding and Retention Warranties
4.210
Security Interest of Collecting Bank in Items, Accompanying Documents and Proceeds
4.211
When Bank Gives Value for Purposes of Holder in Due Course
4.212
Presentment by Notice of Item Not Payable By, Through or at a Bank
4.213
Medium and Time of Settlement by Bank
4.214
Right of Charge-back or Refund
4.215
Final Payment of Item by Payor Bank
4.216
Insolvency and Preference
4.301
Deferred Posting
4.302
Payor Bank’s Responsibility for Late Return of Item
4.303
When Items Subject to Notice, Stop-payment Order, Legal Process, or Setoff
4.401
When Bank May Charge Customer’s Account
4.402
Bank’s Liability to Customer for Wrongful Dishonor
4.403
Customer’s Right to Stop Payment
4.404
Bank Not Obligated to Pay Check More than Six Months Old
4.405
Death or Incompetence of Customer
4.406
Customer’s Duty to Discover and Report Unauthorized Signature or Alteration
4.407
Payor Bank’s Right to Subrogation on Improper Payment
4.501
Handling of Documentary Drafts
4.503
Responsibility of Presenting Bank for Documents and Goods
4.504
Privilege of Presenting Bank to Deal with Goods

Accessed:
Apr. 13, 2024

§ 4.501’s source at texas​.gov