4-302 - Payor Bank's Responsibility for Late Return of Item.

Section 4--302. Payor Bank's Responsibility for Late Return of Item. In  the  absence  of  a  valid defense such as breach of a presentment  warranty (subsection (1) of Section 4--207), settlement effected or  the  like,  if  an item is presented on and received by a payor bank the bank  is accountable for the amount of (a) a demand item other than a documentary draft whether properly payable or not if the bank, in any case where it is not  also the  depositary bank, retains the item beyond midnight of the banking day of receipt without settling for it or, regardless of whether it is also the depositary bank, does  not  pay  or return  the  item  or send notice of dishonor until after its midnight deadline; or (b) 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.