N.J.S.A. 12A:4-503 — Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need

12A:4-503. Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need a. Unless otherwise instructed and except as provided in chapter 5 of Title 12A, 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. b. A 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. L.1995,c.28,s.2.

This is the verbatim text of N.J.S.A. 12A:4-503, retrieved from the New Jersey Legislature's public statute corpus. Statutes are amended periodically — for the most current version, check the external source link above. Kyzer is not a law firm and this page is not legal advice.