2006 New York Code - Dishonor; Holder\'s Right Of Recourse; Term Allowing Re-presentment.

 
  Section 3--507. Dishonor;  Holder's  Right  of  Recourse;  Term Allowing
                    Re-Presentment.
    (1) An instrument is dishonored when
         (a) a necessary or optional presentment  is  duly  made  and  due
             acceptance or payment is refused or cannot be obtained within
             the  prescribed  time  or  in  case  of  bank collections the
             instrument is seasonably returned by  the  midnight  deadline
             (Section 4--301); or
         (b) presentment  is  excused  and  the  instrument  is  not  duly
             accepted or paid.
    (2) Subject to any necessary  notice  of  dishonor  and  protest,  the
  holder  has  upon  dishonor  an  immediate right of recourse against the
  drawers and indorsers.
    (3) Return of an instrument for lack  of  proper  indorsement  is  not
  dishonor.
    (4) A term in a draft or an indorsement thereof allowing a stated time
  for  re-presentment  in  the  event  of  any  dishonor  of  the draft by
  nonacceptance if a time draft or by nonpayment if a  sight  draft  gives
  the holder as against any secondary party bound by the term an option to
  waive  the  dishonor  without  affecting  the liability of the secondary
  party and he may present again up to the end of the stated time.