Idaho Code 28-4-503 – Responsibility of Presenting Bank for Documents and Goods — Report of Reasons for Dishonor — Referee in Case of Need
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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 (3) days after presentment; otherwise, only on payment; and
Terms Used In Idaho Code 28-4-503
- Documentary draft: means a draft to be presented for acceptance or payment if specified documents, certificated securities (section 28-8-102) or instructions for uncertificated securities (section 28-8-102), or other certificates, statements, or the like are to be received by the drawee or other payor before acceptance or payment of the draft;
Idaho Code 28-4-104Draft: means a draft as defined in section 28-3-104 or an item, other than an instrument, that is an order;
Idaho Code 28-4-104Drawee: means a person ordered in a draft to make payment;
Idaho Code 28-4-104Obligation: 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.
(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 the following instructions and to prepayment of or indemnity for those expenses.