Okla. Stat. tit. 12A § 3-501

Current through Laws 2024, c. 453.

Section 3-501 - Presentment

(a) "Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument (i) to pay the instrument made to the drawee or a party obliged to pay the instrument or, in the case of a note or accepted draft payable at a bank, to the bank, or (ii) to accept a draft made to the drawee.

(b) The following rules are subject to Article 4 of this title, agreement of the parties, and clearing-house rules and the like:

(1) Presentment may be made at the place of payment of the instrument and must be made at the place of payment if the instrument is payable at a bank in the United States; may be made by any commercially reasonable means, including an oral, written, or electronic communication; is effective when the demand for payment or acceptance is received by the person to whom presentment is made; and is effective if made to any one of two or more makers, acceptors, drawees, or other payors;

(2) Upon demand of the person to whom presentment is made, the person making presentment must (i) exhibit the instrument, (ii) give reasonable identification and, if presentment is made on behalf of another person, reasonable evidence of authority to do so, and (iii) sign a receipt on the instrument for any payment made or surrender the instrument if full payment is made;

(3) Without dishonoring the instrument, the party to whom presentment is made may (i) return the instrument for lack of a necessary indorsement, or (ii) refuse payment or acceptance for failure of the presentment to comply with the terms of the instrument, an agreement of the parties, or other applicable law or rule; and

(4) The party to whom presentment is made may treat presentment as occurring on the next business day after the day of presentment if the party to whom presentment is made has established a cutoff hour not earlier than 2 o'clock p.m. for the receipt and processing of instruments presented for payment or acceptance and presentment is made after the cutoff hour.

Okla. Stat. tit. 12A, § 3-501

Laws 1961, p. 114, § 3-501; Amended by Laws 1970, SB 232, c. 246, § 2; Amended by Laws 1991, SB 25, c. 117, § 84, eff. 1/1/1992.

Oklahoma Code Comment

Part 5 of current Article 3 essentially continues the provisions of Part 5 of pre-revision Article 3, but substantially rearranges them, omits a number of them because other provisions were changed for policy reasons or because they no longer represent a sufficient issue to deserve explicit rather than general treatment, and redrafts many of the provisions for clarity. The roadmap is as follows:

Pre-Revision Article 3 Section Current Article 3 Section § 3-501(1)(a) § 3-414(b); § 3-502(b)(3) and (4) § 3-501(1)(b) § 3-415(a); § 3-502(a)(1) and (2) § 3-502(b), (c), (d) and (e) § 3-501(1)(c) § 3-414(f); § 3-415(e) § 3-501(2)(a) § 3-503(a) § 3-501(2)(b) Omitted; see Comment 2 to § 3-414 § 3-501(3) Omitted; see Comment to § 3-505 § 3-501(4) Omitted as unnecessary § 3-502(1)(a) § 3-415(e) § 3-502(1)(b) § 3-414(f) § 3-502(2) Omitted; see Comment to § 3-505 § 3-503 Omitted; see Comment to § 3-502 § 3-504(1) § 3-501(a) §3-504(2)(a) § 3-501(b)(1) § 3-504 (2)(b) § 3-501(b)(1) § 3-504 (2)(c) § 3-501(b)(1); § 3-111 § 3-504(3)(a) § 3-501(b)(1) § 3-504(3)(b) Omitted as unnecessary § 3-504(4) § 3-501(b)(1) §3-504(5) § 3-501(b) §3-505(1)(a) § 3-501(b)(2)(i) §3-505(1)(b) § 3-501(b)(2)(ii) §3-505(1)(c) § 3-501(b)(3)(i) §3-505(1)(c) § 3-501(b)(2)(iii) § 3-505(2) 0mitted as unnecessary § 3-506(1) Omitted as issue covered in § 3-502(d) § 3-506(2) Omitted as issue covered in § 3-502(c) § 3-507(1) § 3-502 § 3-507(2) Omitted as covered in liability sections § 3-507(3) § 3-501(b)(3)(i) § 3-507(4) § 3-504 § 3-508(1) § 3-503(b) § 3-508(2) § 3-503(c) § 3-508(3) § 3-503(b) § 3-508(4) Omitted as covered in 1-201 § 3-508 (5) Omitted as unnecessary § 3-508(6) Omitted as unnecessary § 3-508(7) Omitted as unnecessary § 3-508(8) § 3-503(b) § 3-509(1) § 3-505(b) § 3-509(2) § 3-505(b). § 3-509 (3) § 3-505(b) § 3-509 (4) Omitted; see Comment to § 3-505 § 3-509 (5) Omitted; see Comment to § 3-505 § 3-510(a) § 3-505(a)(1) § 3-510(b) § 3-505(a)(2) § 3-510(c) § 3-505(a)(3) § 3-511(1) § 3-504 § 3-511(2)(a) § 3-504(a)(iv) § 3-511(2)(b) § 3-504(a)(ii), (iv), and (v); § 3-504 (b) § 3-511(2)(c) § 3-504(a)(i) §3-511(3)(a) § 3-504(a)(ii) § 3-511(3)(b) § 3-504 (a)(ii) § 3-511(4) § 3-502(f) § 3-511(5) Omitted, see Comment to § 3-505 § 3-511(6) Omitted as unnecessary

Part 5 also makes some changes in the law, although the basic rules remain unchanged. For example, the basic rule in Brannons No. Seven, Inc. v. Phelps, 665 P.2d 860 (Okla. Ct. App. 1983), that a holder is required to give notice of dishonor to an indorser before the indorser's liability is fixed, continues unchanged under Section 3-503 . The changes in Part 5 are:

(1) Electronic presentment is explicitly authorized under sub section 3-501(b)(1) . This will facilitate check truncation, where information from the check is sent forward electronically rather than the check itself, which is held within the banking system. See also Sections 4-110 and 4-406 and their Comments, and the Official Comment to this Section.

(2) With respect to notes payable at a definite time, a formal demand for payment as reminiscent of face-to-face dealings is no longer required for dishonor to precipitate indorser liability under sub section 3-502(a)(3) . See UCC § 3-502, Official Comments 2 and 3.

(3) Notice of dishonor is no longer relevant to a drawer's liability except where the draft is accepted by other than a bank (defined in sub section 3-103(c) and Section 4-105 as including a savings bank, savings and loan association, credit union or trust company). See UCC §§ 3-503(a) and 3-414(b), (c) and (d); § 3-414, Official Comments 2 and 4; and the Official Comments to UCC § 3-503.

(4) Sub section 3-503(c) increases the time to give notice of dishonor for a person other than a collecting bank to 30 calendar days, rather than the 3-business-day period in pre-revision sub section 3-508(2) . Note that while the same time for a collecting bank is retained, a depositary bank may have a longer time to charge back under Section 4-214 .

(5) Section 3-504 , on excused notice of dishonor, and sub section 3-502(f) are consistent with Reynolds-Wilson Lumber Co. v. Peoples National Bank, 699 P.2d 146 (Okra. 1985), which overruled Goodman v. Norman Bank of Commerce, 551 P.2d 661 (Okla. Ct. App. 1976). The latter case held that notice of dishonor was excused on a represented check.

(6) Protest is no longer required in any circumstance, and must be requested by the holder as any other service provided by the banking system. See the Official Comment to UCC § 3-505