2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 35 - Dishonor
Section 3502 - Dishonor

     § 3502.  Dishonor.
        (a)  Dishonor of note.--Dishonor of a note is governed by the
     following rules:
            (1)  If the note is payable on demand, the note is
        dishonored if presentment is duly made to the maker and the
        note is not paid on the day of presentment.
            (2)  If the note is not payable on demand and is payable
        at or through a bank or the terms of the note require
        presentment, the note is dishonored if presentment is duly
        made and the note is not paid on the day it becomes payable
        or the day of presentment, whichever is later.
            (3)  If the note is not payable on demand and paragraph
        (2) does not apply, the note is dishonored if it is not paid
        on the day it becomes payable.
        (b)  Dishonor of unaccepted draft.--Dishonor of an unaccepted
     draft other than a documentary draft is governed by the
     following rules:
            (1)  If a check is duly presented for payment to the
        payor bank otherwise than for immediate payment over the
        counter, the check is dishonored if the payor bank makes
        timely return of the check or sends timely notice of dishonor
        or nonpayment under section 4301 (relating to deferred
        posting; recovery of payment by return of items; time of
        dishonor; return of items by payor bank) or 4302 (relating to
        responsibility of payor bank for late return of item) or
        becomes accountable for the amount of the check under section
        4302.
            (2)  If a draft is payable on demand and paragraph (1)
        does not apply, the draft is dishonored if presentment for
        payment is duly made to the drawee and the draft is not paid
        on the day of presentment.
            (3)  If a draft is payable on a date stated in the draft,
        the draft is dishonored if:
                (i)  presentment for payment is duly made to the
            drawee and payment is not made on the day the draft
            becomes payable or the day of presentment, whichever is
            later; or
                (ii)  presentment for acceptance is duly made before
            the day the draft becomes payable and the draft is not
            accepted on the day of presentment.
            (4)  If a draft is payable on elapse of a period of time
        after sight or acceptance, the draft is dishonored if
        presentment for acceptance is duly made and the draft is not
        accepted on the day of presentment.
        (c)  Dishonor of unaccepted documentary draft.--Dishonor of
     an unaccepted documentary draft occurs according to the rules
     stated in subsection (b)(2), (3) and (4), except that payment or
     acceptance may be delayed without dishonor until no later than
     the close of the third business day of the drawee following the
     day on which payment or acceptance is required by those
     paragraphs.
        (d)  Dishonor of accepted draft.--Dishonor of an accepted
     draft is governed by the following rules:
            (1)  If the draft is payable on demand, the draft is
        dishonored if presentment for payment is duly made to the
        acceptor and the draft is not paid on the day of presentment.
            (2)  If the draft is not payable on demand, the draft is
        dishonored if presentment for payment is duly made to the
        acceptor and payment is not made on the day it becomes
        payable or the day of presentment, whichever is later.
        (e)  Certain limitations.--In any case in which presentment
     is otherwise required for dishonor under this section and
     presentment is excused under section 3504 (relating to excused
     presentment and notice of dishonor), dishonor occurs without
     presentment if the instrument is not duly accepted or paid.
        (f)  Late acceptance cures dishonor.--If a draft is
     dishonored because timely acceptance of the draft was not made
     and the person entitled to demand acceptance consents to a late
     acceptance, from the time of acceptance the draft is treated as
     never having been dishonored.

        Cross References.  Section 3502 is referred to in section
     2103 of this title; section 1406 of Title 66 (Public Utilities).