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HomeCommercial CodeDiv. 4Ch. 5§ 4502 Draft Presentment On Arrival

§ 4502 Draft Presentment On Arrival

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 4502 Draft Presentment On Arrival

Key Takeaways

  • •If a check says 'pay when goods arrive,' the bank can wait until the goods should have gotten there.
  • •If the goods aren't there yet, the bank can say 'no' to paying, and that's okay.
  • •The bank has to tell the person who sent the check that they said 'no' to paying.
  • •The bank doesn't have to ask again until they're told to or until the goods actually arrive.

Example

You order a bike online and the seller sends a check that says 'pay when the bike arrives.'

The bank can wait to ask for the money until the bike should have gotten to you. If the bike isn't there yet, the bank can say 'no' to paying. They have to tell the seller they said 'no,' but they don't have to ask again until the bike arrives or the seller tells them to.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 4502 Draft Presentment On Arrival

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 shall 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. (Amended by Stats. 1992, Ch. 914, Sec. 48. Effective January 1, 1993.)

Last verified: January 23, 2026

Key Terms

presentment on arrivalreasonable timedishonorcollecting bank

Related Statutes

  • § 10509 Lessee Rejection Rights
  • § 10517 Lessee Revocation Of Acceptance
  • § 3502 Note And Draft Dishonor Rules
  • § 3505 Evidence Of Dishonor
  • § 4503 Documentary Draft Presentation Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 4502.
View Official Source