Missouri Revised Statutes













Chapter 400

Uniform Commercial Code

←400.04-301

Section 400.4-302.1

400.04-303→

August 28, 2015

Payor bank's responsibility for late return of item.

400.4-302. (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

400.4-208) or proof that the person seeking enforcement of the liability

presented or transferred the item for the purpose of defrauding the payor

bank.



(L. 1963 p. 503 § 4-302, A.L. 1992 S.B. 448)







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