§ 554.4302 — Payor bank’s responsibility for late return of item

Iowa § 554.4302

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. If an item is presented to and received by a payor bank, the bank is accountable for the
amount of:
a. a demand item, other than a documentary draft, whether properly payable or not, if
the bank, in any case in which it is not also the depositary bank, retains the item beyond
midnight of the banking day of receipt without settling for it or, whether or not it is also the
depositary bank, does not pay or return the item or send notice of dishonor until after its
midnight deadline; or
b. any other properly payable item unless, within the time allowed for acceptance or
paymentofthatitem, thebankeitheracceptsorpaystheitemorreturnsitandaccompanying
documents.
2. The liability of a payor bank to pay an item pursuant to subsection 1 is subject to
defenses based on breach of a presentment warranty (section 554.4208) or proof that the
person seeking enforcement of the liability presented or transferred the item for the purpose
of defrauding the payor bank.

Legislative History

[C66, 71, 73, 75, 77, 79, 81, §554.4302]