336.4-503 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 article 5, a bank presenting a
(1) must deliver the documents to the drawee on acceptance of the 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 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.
History: 1965 c 811 s 336.4-503; 1986 c 444; 1992 c 565 s 111