11410. Acceptance of Draft
(a) Time of Presentation
Drafts accompanying the shipment of securities need be accepted only on a business day between the hours established by rule or practice in the community where the draft is presented. Acceptance of a draft at other times shall be at the option of the drawee, and the drawee shall not be liable for any expense arising out of its refusal of the draft when presented on a Saturday or half-holiday.
Note: For its own protection, the seller should instruct its bank or collecting agent that if the draft is received on a Saturday or half-holiday, it need not be presented to the drawee until the following business day.
(b) Prior to Settlement Date
The acceptance of a draft prior to the settlement date shall be at the option of the drawee.
(c) With Irregularities
The acceptance of a draft which contains irregularities shall be at the option of the drawee.
(d) Expense Due to Shipment
Expenses of shipment, including insurance, postage, draft, and collection charges, shall be paid by the seller.
(e) Expenses Due to Delay
Failure to accept a draft in which no irregularities exist, when duly presented on a business day, shall make the drawee liable for the payment of interest to the date the draft is paid and for other incidental expenses incurred because of the delay, including protest fees, if any, and wire charges.
(f) Claims for Irregularities
Claims with respect to such items as price, interest, protest fees or wire charges and items of similar nature, arising from the acceptance of draft shipments in which irregularities exist, shall be presented not later than ten days after payment. This limitation shall not apply to matters covered hereinafter under "Reclamations," in Rules 11710 to 11730.
Amended by SR-FINRA-2010-030 eff. Dec. 15, 2010.
Amended eff. Feb. 9, 1968.
Selected Notice: 10-49.