New Jersey § 12A:4-503 Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need

New Jersey Statutes

§ 12A:4-503 — Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need

New Jersey § 12A:4-503

Title 12ACOMMERCIAL TRANSACTIONS

This text of New Jersey § 12A:4-503 (Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need) is published on Counsel Stack Legal Research, covering New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.J. Stat. Ann. § 12A:4-503 (2026).

Text

a. Unless otherwise instructed and except as provided in chapter 5 of Title 12A, 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 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 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. b. A presenting bank is under no oblig

Free access — add to your briefcase to read the full text and ask questions with AI

a. Unless otherwise instructed and except as provided in chapter 5 of Title 12A, 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 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 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. b. A 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. L.1995,c.28,s.2.