§12A-4-302. Payor Bank's Responsibility for Late Return of Item.
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/ok/title-12a-uniform-commercial-code/12a-4-302·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
PAYOR BANK'S RESPONSIBILITY FOR LATE RETURN OF ITEM
(a)If an item is presented to and received by a payor bank, the bank is accountable for the amount of:
(1)a demand item, other than a documentary draft, whether
properly payable or not, if the bank, in any case in
which it is not also the depositary bank, retains the
item beyond midnight of the banking day of receipt
without settling for it or, whether or not it is also
the depositary bank, does not pay or return the item
or send notice of dishonor until after its midnight
deadline; or
(2)any other properly payable item unless, within the
time allowed for acceptance or payment of that item,
the bank either accepts or pays the item or returns it
and accompanying documents.
(b)The liability of a payor bank to pay an item pursuant to subsection
(a)of this section is subject to defenses based on breach of presentment warranty (Section 4-208 of this title) or proof that the person seeking enforcement of the liability presented or transferred the item for the purpose of defrauding the payor bank. Laws 1961, p. 129, § 4-302; Laws 1991, c. 117, § 122, eff. Jan. 1, 1992.