84-4-503. 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 documentary draft:
(a) 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
(b) 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: L. 1965, ch. 564, § 236; L. 1991, ch. 296, § 109; Feb. 1, 1992.
Structure Kansas Statutes
Chapter 84 - Uniform Commercial Code
Article 4 - Bank Deposits And Collections
84-4-103 Variation by agreement; measure of damages; action constituting ordinary care.
84-4-104 Definitions and index of definitions.
84-4-106 Payable through or payable at bank; collecting bank.
84-4-107 Separate office of bank.
84-4-108 Time of receipt of items.
84-4-110 Electronic presentment.
84-4-111 Statute of limitations.
84-4-202 Responsibility for collection or return; when action timely.
84-4-203 Effect of instructions.
84-4-204 Methods of sending and presenting; sending directly to payor bank.
84-4-205 Depository bank holder of unendorsed item.
84-4-206 Transfer between banks.
84-4-208 Presentment warranties.
84-4-209 Encoding and retention warranties.
84-4-210 Security interest of collecting bank in items, accompanying documents and proceeds.
84-4-211 When bank gives value for purposes of holder in due course.
84-4-213 Medium and time of settlement by bank.
84-4-214 Right of charge-back or refund; liability of collecting bank; return of item.
84-4-216 Insolvency and preference.
84-4-302 Payor bank's responsibility for late return of item.
84-4-401 When bank may charge customer's account.
84-4-403 Customer's right to stop payment; burden of proof of loss.
84-4-404 Bank not obligated to pay check more than six months old.
84-4-405 Death or incompetence of customer.
84-4-406 Customer's duty to discover and report unauthorized signature or alteration.
84-4-407 Payor bank's right to subrogation on improper payment.
84-4-502 Presentment of "on arrival" drafts.
84-4-504 Privilege of presenting bank to deal with goods; security interest for expenses.