On November 22, a $25,000 check drawn on the First National Bank of Nevada was deposited with Lincoln First Bank-Central. Lincoln forwarded the check to Nevada via Hartford National Bank and Trust Company and Wells Fargo Bank. Nevada received the check on Friday, December 10, and discovered that it was drawn on insufficient funds. That same day, Nevada informed Wells Fargo by telephone that the check had been dishonored.

On Monday, December 13, Nevada mailed the check to Wells Fargo, which received it on Friday, December 17. Upon receiving the check, Wells Fargo promptly wired notice of the dishonor to Hartford and mailed the check to Hartford. Hartford received the check on December 21 and mailed it to Lincoln, which received it on December 27. Lincoln refused to accept the check, claiming that the notice of dishonor had arrived too late.

Wells Fargo, which eventually ended up with the check and the $25,000 loss, brought an action to reverse the $25,000 credit it had given to Hartford in the course of handling the check. Decision?