§ 6A-4-302 - Payor bank's responsibility for late return of item.
SECTION 6A-4-302
§ 6A-4-302 Payor bank's responsibility forlate return of item. – (a) If an item is presented to and received by a payor bank, the bank isaccountable for the amount of:
(1) A demand item, other than a documentary draft, whetherproperly payable or not, if the bank, in any case in which it is not also thedepositary bank, retains the item beyond midnight of the banking day of receiptwithout settling for it or, whether or not it is also the depositary bank, doesnot pay or return the item or send notice of dishonor until after its midnightdeadline; or
(2) Any other properly payable item unless, within the timeallowed for acceptance or payment of that item, the bank either accepts or paysthe item or returns it and accompanying documents.
(b) The liability of a payor bank to pay an item pursuant tosubsection (a) is subject to defenses based on breach of a presentment warranty(§ 6A-4-208) or proof that the person seeking enforcement of the liabilitypresented or transferred the item for the purpose of defrauding the payor bank.