Texas Business & Commerce Code - Section 4.503. Responsibility Of Presenting Bank For Documents And Goods; Report Of Reasons For Dishonor; Referee In Case Of Need
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§ 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 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.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.
Amended by Acts 1995, 74th Leg., ch. 921, § 4, eff. Jan. 1, 1996.
Section: 4.403 4.404 4.405 4.406 4.407 4.501 4.502 4.503 4.504 5.101 5.102 5.103 5.104 5.105 5.106
Last modified: August 10, 2007
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