Alaska Statutes 45.04.503 – 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 Alaska Stat. Chapter 45.05, a bank presenting a documentary draft

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Terms Used In Alaska Statutes 45.04.503

documentary draft: means a draft to be presented for acceptance or payment if specified documents, certificated securities under Alaska Stat. See Alaska Statutes 45.04.104
draft: means a draft as defined in Alaska Stat. See Alaska Statutes 45.04.104
drawee: means a person ordered in a draft to make payment. See Alaska Statutes 45.04.104
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.

(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 a referee in case of need designated in the draft or, if the presenting bank does not choose to use a 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 for dishonor, and must request instructions.

(b) A presenting bank is under no obligation with respect to goods represented by the documents except to follow reasonable instructions seasonably received; it has a right to reimbursement for expenses incurred in following instructions and to prepayment of or indemnity for these expenses.

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