§ 6A-4-503 - Responsibility of presenting bank for documents and goods – Report of reasons for dishonor – Referee in case of need. - Rhode-island Statutes

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Statutes > Rhode-island > Title-6a > Chapter-6a-4 > 6a-4-503

SECTION 6A-4-503

§ 6A-4-503 Responsibility of presentingbank 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 ofthe 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 foracceptance or presentment for payment, may seek and follow instructions fromany referee in case of need designated in the draft or, if the presenting bankdoes not choose to utilize the referee's services, it must use diligence andgood faith to ascertain the reason for dishonor, must notify its transferor ofthe dishonor and of the results of its effort to ascertain the reasonstherefor, and must request instructions.

However the presenting bank is under no obligation withrespect to goods represented by the documents except to follow any reasonableinstructions seasonably received; it has a right to reimbursement for anyexpense incurred in following instructions and to prepayment of or indemnityfor those expenses.

State Codes and Statutes

Statutes > Rhode-island > Title-6a > Chapter-6a-4 > 6a-4-503

SECTION 6A-4-503

§ 6A-4-503 Responsibility of presentingbank 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 ofthe 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 foracceptance or presentment for payment, may seek and follow instructions fromany referee in case of need designated in the draft or, if the presenting bankdoes not choose to utilize the referee's services, it must use diligence andgood faith to ascertain the reason for dishonor, must notify its transferor ofthe dishonor and of the results of its effort to ascertain the reasonstherefor, and must request instructions.

However the presenting bank is under no obligation withrespect to goods represented by the documents except to follow any reasonableinstructions seasonably received; it has a right to reimbursement for anyexpense incurred in following instructions and to prepayment of or indemnityfor those expenses.

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State Codes and Statutes

Statutes > Rhode-island > Title-6a > Chapter-6a-4 > 6a-4-503

SECTION 6A-4-503

§ 6A-4-503 Responsibility of presentingbank 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 ofthe 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 foracceptance or presentment for payment, may seek and follow instructions fromany referee in case of need designated in the draft or, if the presenting bankdoes not choose to utilize the referee's services, it must use diligence andgood faith to ascertain the reason for dishonor, must notify its transferor ofthe dishonor and of the results of its effort to ascertain the reasonstherefor, and must request instructions.

However the presenting bank is under no obligation withrespect to goods represented by the documents except to follow any reasonableinstructions seasonably received; it has a right to reimbursement for anyexpense incurred in following instructions and to prepayment of or indemnityfor those expenses.