§ 4503. Responsibility of presenting bank for documents and goods; report of reasons for dishon...
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 13 Pa.C.S.A. Commercial Code
13 Pa.C.S.A. § 4503
§ 4503. 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 Division 5 (relating to letters of credit), a bank presenting a documentary draft:
(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.
Credits
1979, Nov. 1, P.L. 255, No. 86, § 1, effective Jan. 1, 1980. Amended 1992, July 9, P.L. 507, No. 97, § 14, effective in one year.
13 Pa.C.S.A. § 4503, PA ST 13 Pa.C.S.A. § 4503
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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