1. Dishonor of a note isgoverned by the following rules: a. If the note is payable on demand, the note is dishonored ifpresentment is duly made tothe maker and the note is not paid on the day of presentment. b. If the note is not payable on demand and is payable ator through a bank or the terms ofthe note require presentment, the note is dishonored ifpresentment is duly made and the note is not paid on the day itbecomes payable or the day of presentment, whichever islater. c. If the note isnot payable on demand and paragraph “b” does not apply, the note is dishonored if itisnot paid on the day itbecomes payable. 2. Dishonor of an unaccepted draft other than a documentary draft is governed by the following rules: a. If acheck isduly presented forpayment tothe payor bank otherwise than forimmediate 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 554.4301 or 554.4302, or becomes accountable for the amount of the check under section 554.4302. b. If adraft ispayable ondemand and paragraph “a” does notapply, the draftisdishonored ifpresentment for payment is duly made to the drawee and the draft isnot paid on the day of presentment. c. If a draft is payable on a date stated in the draft, the draft isdishonored ifpresentment forpayment isdulymade tothedrawee and payment isnotmade onthe day the draft becomes payable or the day of presentment, whichever is later,or presentment for acceptance is duly made before the day the draft becomes payable and the draft is not accepted on the day of presentment. d. 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. 3. Dishonor of an unaccepted documentary draft occurs according to the rules stated in subsection 2, paragraphs “b”, “c”,and “d”, except that payment or acceptance may be delayed without dishonor untilno later than the closeof the third business day of the draweefollowing the day on which payment or acceptance isrequired by those paragraphs. 4. Dishonor of an accepted draft isgoverned by the following rules: a. If the draft ispayable on demand, the draft isdishonored ifpresentment for payment isduly made to the acceptor and the draft isnot paid on the day of presentment. b. If the draftis not payable on demand, the draft isdishonored ifpresentment forpayment isduly made to the acceptor and payment is not made on the day itbecomes payable or the day of presentment, whichever is later. 5. In any case in which presentment isotherwise required for dishonor under this section and presentment isexcused under section 554.3504, dishonor occurs without presentment if the instrument is not duly accepted or paid. 6. 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.
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