400.4-503. Responsibility of presenting bank for documents and goods--report of reasons for dishonor--referee in case of need. - Missouri Statutes

Responsibility of presenting bank for documents and goods--report ofreasons for dishonor--referee in case of need.

400.4-503. Unless otherwise instructed and except asprovided in article 5 a bank presenting a documentary draft:

(1) must deliver the documents to the drawee on acceptanceof the draft if it is payable more than three days afterpresentment; otherwise, only on payment; and

(2) upon dishonor, either in the case of presentment foracceptance or presentment for payment, may seek and followinstructions from any referee in case of need designated in thedraft or if the presenting bank does not choose to utilize thereferee's services, it must use diligence and good faith toascertain the reason for dishonor, must notify its transferor ofthe dishonor and of the results of its effort to ascertain thereasons therefor, and must request instructions.However the presenting bank is under no obligation withrespect to goods represented by the documents except to followany reasonable instructions seasonably received; it has a rightto reimbursement for any expense incurred in followinginstructions and to prepayment of or indemnity for thoseexpenses.

(L. 1963 p. 503 § 4-503, A.L. 1992 S.B. 448)