§12A-4-503. Responsibility of Presenting Bank for Documents and
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Goods; Report of Reasons for Dishonor; Referee in Case of Need.
RESPONSIBILITY OF PRESENTING BANK FOR DOCUMENTS AND GOODS;
REPORT OF REASONS FOR DISHONOR; REFEREE IN CASE OF NEED
Unless otherwise instructed and except as provided in Article 5 of this title, a bank presenting a documentary draft:
(1)Must deliver the documents to the drawee on acceptance
of the draft if it is payable more than three
(3)days
after presentment; otherwise, only on payment; and
Upon dishonor, either in the case of presentment for
acceptance or presentment for payment, may seek and
follow instructions from any referee in case of need
designated in the draft or, if the presenting bank
does not choose to utilize the referee's services, it
must use diligence and good faith to ascertain the
reason for dishonor, must notify its transferor of the
dishonor and of the results of its effort to ascertain
the reasons therefor, and must request instructions. However, the presenting bank is under no obligation with respect to goods represented by the documents except to follow any reasonable instructions seasonably received; it has a right to reimbursement for any expense incurred in following instructions and to prepayment of or indemnity for those expenses. Laws 1961, p. 131, § 4-503; Laws 1991, c. 117, § 132, eff. Jan. 1, 1992.