674.501

Handling of documentary drafts; duty to send for presentment and to notify customer of dishonor.

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674.501 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.
History.s. 1, ch. 65-254; s. 45, ch. 92-82.
Note.s. 4-501, U.C.C.
Notes of Decisions
Cited in 2 cases, 1985–1996 · leading case: Gathercrest Ltd. v. First American Bank & Trust
Gathercrest Ltd. v. First American Bank & Trust (1985) flmd · cites it 3× “MSB was required to seasonably notify plaintiffs of dishonor, Fla.Stat. § 674.501, and to use diligence and good faith to ascertain the reason for dishonor, notify SBI of the dishonor and of the results of its effort to ascertain the reasons therefore, and request instructions.”
Great Western Bank v. Steve James Ford, Inc. (1996) gasd · cites it 2× “Fla.Stat. Ann. § 674.501. Great Western argues that, even if the drafts in this case were not returned within seven days, it cannot be liable for them because it acted merely as a collecting bank.”
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