Under Revised Article 3 of the UCC, failure to give notice of dishonor will discharge the drawer from having to pay on the instrument.

Question

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Under Revised Article 3 of the UCC, failure to give notice of dishonor does not discharge the drawer or an indorser from liability on the instrument. Notice of dishonor is relevant for accelerating payment or informing parties of the dishonor, but lack of notice does not automatically relieve the drawer of their obligation to pay.

Under Revised Article 3 of the UCC, Failure to Give