                                 CODE OF VIRGINIA

NOTICE OF DISHONOR (§ 8.3A-503)

a. The obligation of an endorser stated in &#xA7; 8.3A-415 (a) and the
obligation of a drawer stated &#xA7; 8.3A-414 (d) may not be enforced unless (i)
the endorser or drawer is given notice of dishonor of the instrument complying
with this section or (ii) notice of dishonor is excused under &#xA7; 8.3A-504
(b).

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 &#xA7; 8.3A-504 (c), 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 thirty 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 thirty days following the day on which dishonor occurs.

HISTORY: Code 1950, §§ 6-443 through 6-461, 6-471, 6-496, 6-505; 1964, c. 219,
§§ 8.3-501, 8.3-508; 1992, c. 693.