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§490:4-302  Payor bank's responsibility for late return of item. 


Published: 2015

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     §490:4-302  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) is subject to defenses based on breach of a

presentment warranty (section 490:4-208) or proof that the person seeking

enforcement of the liability presented or transferred the item for the purpose

of defrauding the payor bank. [L 1965, c 208, §4-302; HRS §490:4-302; am L

1991, c 118, pt of §4]