New Jersey Statutes 12A:4-503. Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need
Terms Used In New Jersey Statutes 12A:4-503
- Bank: means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company. See New Jersey Statutes 12A:4-105
- Documentary draft: means a draft to be presented for acceptance or payment if specified documents, certificated securities (12A:8-102) or instructions for uncertificated securities (12A:8-102), or other certificates, statements, or the like are to be received by the drawee or other payor before acceptance or payment of the draft. See New Jersey Statutes 12A:4-104
- Draft: means a draft as defined in 12A:3-104 or an item, other than an instrument, that is an order. See New Jersey Statutes 12A:4-104
- Drawee: means a person ordered in a draft to make payment. See New Jersey Statutes 12A:4-104
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Presenting bank: means a bank presenting an item except a payor bank. See New Jersey Statutes 12A:4-105
(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.