Uniform Commercial Code
Bank Deposits And Collections
Collection of Items: Payor Banks
§ 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
(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.)