Colorado § 4-3-504 - Excused presentment and notice of dishonor.

§ 4-3-504. Excused presentment and notice of dishonor.

(a) Presentment for payment or acceptance of an instrument is excused if (i) the person entitled to present the instrument cannot with reasonable diligence make presentment, (ii) the maker or acceptor has obligation to pay the instrument or is dead or in insolvency proceedings, (iii) by the terms of the instrument presentment is not necessary to enforce the obligation of indorsers or the drawer, (iv) the drawer or indorser whose obligation is being enforced has waived presentment or otherwise has no reason to expect or right to require that the instrument be paid or accepted, or (v) the drawer instructed the drawee not to pay or accept the draft or the drawee was not obligated to the drawer to pay the draft.

(b) Notice of dishonor is excused if (i) by the terms of the instrument notice of dishonor is not necessary to enforce the obligation of a party to pay the instrument, or (ii) the party whose obligation is being enforced waived notice of dishonor. A waiver of presentment is also a waiver of notice of dishonor.

(c) Delay in giving notice of dishonor is excused if the delay was caused by circumstances beyond the control of the person giving the notice and the person giving the notice exercised reasonable diligence after the cause of the delay ceased to operate.

Source: L. 94: Entire article R&RE, p. 875, § 1, effective January 1, 1995.

Editor's note: This section is similar to former § 4-3-511 as it existed prior to 1994.

ANNOTATION

Annotator's note. The following annotations include cases decided under former provisions similar to this section.

Presentment for payment and waiver of dishonor may be expressly or impliedly waived in accordance with this section. Torbert v. Montague, 38 Colo. 325, 87 P. 1145 (1906).

Such waiver may consist of acts and declarations of the indorser calculated to mislead the holder, put him off his guard, or induce him to forbear taking the necessary steps to charge such indorser. Torbert v. Montague, 38 Colo. 325, 87 P. 1145 (1906).

An indorser of a promissory note waives notice of dishonor under this section by repeated assurances before and after maturity that he would see that the note was paid. James v. Ward, 80 Colo. 293, 250 P. 1097 (1926).

Notice of dishonor need not be alleged in an action against the indorser where it is alleged that payment was demanded of him. De La Vergne v. Globe Printing Co., 27 Colo. App. 308, 148 P. 923 (1915).