57A-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 chapter 57A-5, a bank presenting a documentary draft:
(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.
Source: SL 1994, ch 368, ยง4-503.
Structure South Dakota Codified Laws
Title 57A - Uniform Commercial Code
Chapter 04 - Bank Deposits And Collections
Section 57A-4-101 - Short title.
Section 57A-4-102 - Applicability.
Section 57A-4-104 - Definitions and index of definitions.
Section 57A-4-106 - Payable through or payable at bank--Collecting bank.
Section 57A-4-107 - Separate office of a bank.
Section 57A-4-108 - Time of receipt of items.
Section 57A-4-110 - Electronic presentment.
Section 57A-4-111 - Statute of limitations.
Section 57A-4-202 - Responsibility for collection or return--When action timely.
Section 57A-4-203 - Effect of instructions.
Section 57A-4-204 - Methods of sending and presenting--Sending directly to payor bank.
Section 57A-4-205 - Depositary bank holder of unendorsed item.
Section 57A-4-206 - Transfer between banks.
Section 57A-4-207 - Transfer warranties.
Section 57A-4-208 - Presentment warranties.
Section 57A-4-209 - Encoding and retention warranties.
Section 57A-4-211 - When bank gives value for purposes of holder in due course.
Section 57A-4-213 - Medium and time of settlement by bank.
Section 57A-4-214 - Right of charge-back or refund; Liability of collecting bank; Return of item.
Section 57A-4-216 - Insolvency and preference.
Section 57A-4-302 - Payor bank's responsibility for late return of item.
Section 57A-4-401 - When bank may charge customer's account.
Section 57A-4-403 - Customer's right to stop payment--Burden of proof of loss.
Section 57A-4-404 - Bank not obligated to pay check more than six months old.
Section 57A-4-405 - Death or incompetence of customer.
Section 57A-4-406 - Customer's duty to discover and report unauthorized signature or alteration.
Section 57A-4-407 - Payor bank's right to subrogation on improper payment.
Section 57A-4-502 - Presentment of "on arrival" drafts.
Section 57A-4-504 - Privilege of presenting bank to deal with goods--Security interest for expenses.