§ 34.1-4-503 — Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need

(a) Unless otherwise instructed and except as provided in
article 5, a bank presenting a documentary draft:
(i) 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
(ii) 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) 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 following any
reasonable instructions and to prepayment of or indemnity for
those expenses.