Opinion ID: 540042
Heading Depth: 3
Heading Rank: 1

Heading: Letter of Collection

Text: 8 The letter, which is the primary source of responsibility in this case, instructs NBC Bank to notify Sutton in case of any difficulty of lack payment. 6 The district court found that section demanded notice only if there were a lack of payment or failure to pay. Likewise, NBC Bank emphasizes that the trigger for notice is a lack of payment. 9 What the court below and NBC Bank ignore is the word difficulty. The letter did not instruct NBC Bank to notify Sutton only if there were a default, or a failure to pay, or a lack of payment. Rather, NBC Bank was called on to act also if there were any difficulty in collecting payment. And the request that NBC Bank hold the letter while J & J Wine sought financing certainly posed a difficulty in collection. Once NBC Bank knew that J & J Wine had asked for time to come up with the money, it should have notified Sutton in accordance with the letter's instructions. 10 The Rules specify that any special instructions posted on a letter of collection should be complete and precise. General Provisions, sec. C. While the instructions given on this letter could have been in clearer language, they are sufficiently precise to make NBC Bank aware of its duty to notify Sutton once difficulty arose in the collection.