§ 41-04-30 — (4-302) Payor bank's responsibility for late return of item

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, regardless
of whether it is also the depositary bank, does not pay or return the item or send
notice of dishonor until after its midnight deadline.
b. Any other properly payable item, unless within the time allowed for acceptance or
payment of that item the bank either accepts or pays the item or returns it and
accompanying documents.
2. The liability of a payor bank to pay an item under subsection 1 is subject to defenses
based on breach of a presentment warranty (section 41-04-20) or proof that the
person seeking enforcement of the liability presented or transferred the item for the
purpose of defrauding the payor bank.