HRS 0490-0004-0502 ANNOTATIONS

Prior Uniform Statutory Provision: None.

Purposes:

The section is designed to establish a definite rule for "on arrival" drafts. The term includes not only drafts drawn payable "on arrival" but also drafts forwarded with instructions to present "on arrival". The term refers to the arrival of the relevant goods. Unless a bank has actual knowledge of the arrival of the goods, as for example, when it is the "notify" party on the bill of lading, the section only requires the exercise of such judgment in estimating time as a bank may be expected to have. Commonly the buyer-drawee will want the goods and will therefore call for the documents and take up the draft when they do arrive.

In Article 4: Sections 4-202 and 4-203.

In Article 5: Section 5-112.

"Collecting bank". Section 4-105.