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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