§ 41-04-41 — (4-503) Responsibility of presenting bank for documents and goods - Report of reasons for dishonor - Referee in case of need

Report of reasons for dishonor - Referee in case of need.
Unless otherwise instructed and except as provided in chapter 41-05, a bank presenting a
documentary draft:

1. Must deliver the documents to the drawee either on payment or on acceptance of the
draft if it is payable more than three days after presentment.
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.
But 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 following instructions and to prepayment of or
indemnity for those expenses.