N.Y. U.C.C. 3-507

Section 3--507. Dishonor; Holder's Right of Recourse; Term Allowing\n Re-Presentment.\n (1) An instrument is dishonored when\n (a) a necessary or optional presentment is duly made and due\n acceptance or payment is refused or cannot be obtained within\n the prescribed time or in case of bank collections the\n instrument is seasonably returned by the midnight deadline\n (Section 4--301); or\n (b) presentment is excused and the instrument is not duly\n accepted or paid.\n (2) Subject to any necessary notice of dishonor and protest, the\nholder has upon dishonor an immediate right of recourse against the\ndrawers and indorsers.\n (3) Return of an instrument for lack of proper indorsement is not\ndishonor.\n (4) A term in a draft or an indorsement thereof allowing a stated time\nfor re-presentment in the event of any dishonor of the draft by\nnonacceptance if a time draft or by nonpayment if a sight draft gives\nthe holder as against any secondary party bound by the term an option to\nwaive the dishonor without affecting the liability of the secondary\nparty and he may present again up to the end of the stated time.\n