Indiana Code
Chapter 4. Bank Deposits and Collections
26-1-4-504. Privilege of Presenting Bank to Deal With Goods; Security Interest for Expenses

Sec. 504. (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.
Formerly: Acts 1963, c.317, s.4-504. As amended by P.L.222-1993, SEC.45.

Structure Indiana Code

Indiana Code

Title 26. Commercial Law

Article 1. Uniform Commercial Code

Chapter 4. Bank Deposits and Collections

26-1-4-101. Short Title

26-1-4-102. Applicability

26-1-4-102.5. Application of Bank Provisions to Supervised Financial Organizations

26-1-4-103. Variation by Agreement; Measure of Damages; Action Constituting Ordinary Care

26-1-4-104. Definitions and Index of Definitions

26-1-4-105. "Bank"; "Depositary Bank"; "Payor Bank"; "Intermediary Bank"; "Collecting Bank"; "Presenting Bank"

26-1-4-106. Payable Through or Payable at Bank; Collecting Bank

26-1-4-107. Separate Office of Bank

26-1-4-108. Time of Receipt of Items

26-1-4-109. Delays

26-1-4-110. Electronic Presentment

26-1-4-111. Statute of Limitations

26-1-4-201. Status of Collecting Banks as Agent and Provisional Status of Credits; Applicability of Chapter; Item Endorsed "Pay Any Bank"

26-1-4-202. Responsibility for Collection or Return; When Action Timely

26-1-4-203. Effect of Instructions

26-1-4-204. Methods of Sending and Presenting; Sending Directly to Payor Bank

26-1-4-205. Depositary Bank Holder of Unendorsed Items

26-1-4-206. Transfer Between Banks

26-1-4-207. Transfer Warranties

26-1-4-208. Presentment Warranties

26-1-4-209. Encoding and Retention Warranties

26-1-4-210. Security Interest of Collecting Bank in Items, Accompanying Documents, and Proceeds

26-1-4-211. When Bank Gives Value for Purposes of Holder in Due Course

26-1-4-212. Presentment by Notice of Item Not Payable By, Through, or at Bank; Liability of Drawer or Endorser

26-1-4-213. Medium and Time of Settlement by Bank

26-1-4-214. Right of Charge-Back or Refund; Liability of Collecting Bank; Return of Item

26-1-4-215. Final Payment of Item by Payor Bank; When Provisional Debits and Credits Become Final; When Certain Credits Become Available for Withdrawal

26-1-4-216. Insolvency and Preference

26-1-4-301. Deferred Posting; Recovery of Payment by Return of Items; Time of Dishonor; Return of Items by Payor Bank

26-1-4-302. Payor Bank's Responsibility for Late Return of Item

26-1-4-303. When Items Subject to Notice, Stop-Payment Order, Legal Process, or Setoff; Order in Which Items May Be Charged or Certified

26-1-4-401. When Bank May Charge Customer's Account

26-1-4-402. Bank's Liability to Customer for Wrongful Dishonor; Time of Determining Insufficiency of Account

26-1-4-403. Customer's Right to Stop Payment; Burden of Proof of Loss

26-1-4-404. Bank Not Obligated to Pay Check More Than Six Months Old

26-1-4-405. Death or Incompetence of Customer

26-1-4-406. Customer's Duty to Discover and Report Unauthorized Signature or Alteration

26-1-4-407. Payor Bank's Right to Subrogation on Improper Payment

26-1-4-501. Handling of Documentary Drafts; Duty to Send for Presentment and to Notify Customer of Dishonor

26-1-4-502. Presentment of "On Arrival" Drafts

26-1-4-503. Responsibility of Presenting Bank for Documents and Goods; Report of Reasons for Dishonor; Referee in Case Needed

26-1-4-504. Privilege of Presenting Bank to Deal With Goods; Security Interest for Expenses