§6A-4-302  Payor bank's responsibility for late return of item. –

Link to law: http://webserver.rilin.state.ri.us/Statutes/TITLE6A/6A-4/6A-4-302.HTM
Published: 2015

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TITLE 6A

Uniform Commercial Code

CHAPTER 6A-4

Bank Deposits And Collections

PART 6A-4-301

Collection of Items: Payor Banks

SECTION 6A-4-302



   § 6A-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

(§ 6A-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.



History of Section.

(P.L. 2000, ch. 238, § 4; P.L. 2000, ch. 421, § 4.)