70A-4-302 - Payor bank's responsibility for late return of item. - Utah Statutes

70A-4-302. Payor bank's responsibility for late return of item.
(1) If an item is presented to and received by a payor bank, the bank is accountable forthe amount of:
(a) a demand item, other than a documentary draft, whether properly payable or not, ifthe bank, in any case in which it is not also the depositary bank, retains the item beyond midnightof the banking day of receipt without settling for it or, whether or not it is also the depositarybank, 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 orpayment of that item, the bank either accepts or pays the item or returns it and accompanyingdocuments.
(2) The liability of a payor bank to pay an item pursuant to Subsection (1) is subject todefenses based on breach of a presentment warranty, Section 70A-4-208, or proof that the personseeking enforcement of the liability presented or transferred the item for the purpose ofdefrauding the payor bank.

Amended by Chapter 237, 1993 General Session