47-4503. Responsibility of presenting bank for
documents and goods; report of reasons for dishonor; referee in
case of need
Unless otherwise instructed and except as provided in chapter 5 of this title, a
bank presenting a documentary draft:
1. Must deliver the documents to the drawee on acceptance of the draft if it is
payable more than three days after presentment; otherwise, only on payment; and
2. Upon dishonor, either in the case of presentment for acceptance or presentment
for payment, may seek and follow instructions from any referee in case of need designated
in the draft or, if the presenting bank does not choose to utilize the referee's
services, it must use diligence and good faith to ascertain the reason for dishonor, must
notify its transferor of the dishonor and of the results of its effort to ascertain the
reasons therefor and must request instructions.
However, the presenting bank is under no obligation with respect to goods represented by
the documents except to follow any reasonable instructions seasonably received; it has a
right to reimbursement for any expense incurred in following instructions and to
prepayment of or indemnity for those expenses.
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