Asked by Shayla Nguyen on Jul 24, 2024
Verified
When a severe weather warning has been declared, a delay in notice of dishonor is excused to the reasonably diligent holder who was prevented from posting the notice.
Notice Of Dishonor
A formal notification that a negotiable instrument, such as a check or promissory note, has been presented for payment and refused.
Severe Weather Warning
An advisory issued by meteorological organizations to inform the public of impending dangerous weather conditions.
Reasonably Diligent Holder
A term used in commercial law referring to individuals holding negotiable instruments who take appropriate actions to secure their interests.
- Discern the effects of presenting for payment, alerting of dishonor, and postponements caused by specific conditions.
Verified Answer
PS
Philo SultanJul 29, 2024
Final Answer :
True
Explanation :
Under the Uniform Commercial Code (UCC), a delay in notice of dishonor is excused when circumstances beyond the control of the holder, such as severe weather, prevent the timely communication of the notice, as long as the holder exercises diligence once the conditions improve.
Learning Objectives
- Discern the effects of presenting for payment, alerting of dishonor, and postponements caused by specific conditions.