HRS §490:4-502
When to present a draft that depends on goods arriving
This section explains how a bank handles a draft that must be presented when goods arrive. The bank can wait a reasonable time for the goods to arrive. If the buyer refuses to pay because the goods have not arrived, that is not a dishonor, and the bank must tell the person who sent it the draft about the refusal.
buyers
The statute, as written — Presentment of "on arrival" drafts
If a draft or the relevant instructions require presentment "on arrival", "when goods arrive" or the like, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal to pay or accept because the goods have not arrived is not dishonor; the bank must notify its transferor of the refusal but need not present the draft again until it is instructed to do so or learns of the arrival of the goods.
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