If a draft or the relevant instructions require presentment “on arrival,” “when goods arrive” or the like, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal to pay or accept because the goods have not arrived is not dishonor; the bank must notify its transferor of the refusal but need not present the draft again until it is instructed to do so or learns of the arrival of the goods.
Tenn. Code Ann. § 47-4-502
Presentment of “on arrival” drafts
Known as the Uniform Commercial Code
The act spans §§ 47–47 (578 sections).
Acts 1963, ch. 81, § 1 (4-502); 1995, ch. 397, § 3.
Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.