Arkansas Code
Part 5 - Collection of Documentary Drafts
§ 4-4-504. Privilege of presenting bank to deal with goods — Security interest for expenses

(a) A presenting bank that, following the dishonor of a documentary draft, has seasonably requested instructions but does not receive them within a reasonable time may store, sell, or otherwise deal with the goods in any reasonable manner.
(b) For its reasonable expenses incurred by action under subsection (a), the presenting bank has a lien upon the goods or their proceeds, which may be foreclosed in the same manner as an unpaid seller's lien.
History. Acts 1961, No. 185, § 4-504; A.S.A. 1947, § 85-4-504; Acts 1991, No. 572, § 6.

<< Previous

Structure Arkansas Code

Arkansas Code

Title 4 - Business and Commercial Law

Subtitle 1 - Uniform Commercial Code

Chapter 4 - Bank Deposits and Collections

Part 5 - Collection of Documentary Drafts

§ 4-4-501. Handling of documentary drafts — Duty to send for presentment and to notify customer of dishonor

§ 4-4-502. Presentment of “on arrival” drafts

§ 4-4-503. Responsibility of presenting bank for documents and goods — Report of reasons for dishonor — Referee in case of need

§ 4-4-504. Privilege of presenting bank to deal with goods — Security interest for expenses