The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 3-503)
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§ 3—503. Notice of dishonor
(a) The obligation of an indorser stated in section 3—415(a) of this title and the obligation of a drawer stated in section 3—414(d) of this title may not be enforced unless (i) the indorser or drawer is given notice of dishonor
of the instrument complying with this section or (ii) notice of dishonor is excused
under section 3—504(b) of this title.
(b) Notice of dishonor may be given by any person; may be given by any commercially reasonable
means, including an oral, written, or electronic communication; and is sufficient
if it reasonably identifies the instrument and indicates that the instrument has been
dishonored or has not been paid or accepted. Return of an instrument given to a bank
for collection is sufficient notice of dishonor.
(c) Subject to section 3—504(c) of this title, with respect to an instrument taken for collection by a collecting bank, notice
of dishonor must be given (i) by the bank before midnight of the next banking day
following the banking day on which the bank receives notice of dishonor of the instrument,
or (ii) by any other person within 30 days following the day on which the person receives
notice of dishonor. With respect to any other instrument, notice of dishonor must
be given within 30 days following the day on which dishonor occurs. (Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1, 1995.)