§490:4-503  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 article 5,
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. [L 1965, c 208, §4-503; HRS
§490:4-503; am L 1991, c 118, pt of §4]