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Can you summarize IACO 554.4302?
UNIFORM COMMERCIAL CODE > Payor banks responsibility for late return of item.
Short Summary
This legal provision, found in the Iowa Code under the Uniform Commercial Code, governs the responsibility of a payor bank for the late return of an item. According to the provision, if a payor bank receives an item and retains it beyond midnight of the banking day of receipt without settling for it, or fails to pay, return, or send notice of dishonor until after its midnight deadline, the bank becomes accountable for the amount of the item. This applies to demand items, other than documentary drafts, whether properly payable or not. Additionally, the payor bank is also accountable for any other properly payable item unless it accepts, pays, or returns the item and accompanying documents within the time allowed for acceptance or payment. The liability of the payor bank to pay an item is subject to defenses based on breach of a presentment warranty or proof of fraudulent intent by the person seeking enforcement of the liability. The provision does not mention any specific penalties for non-compliance or violation.
Whom does it apply to?
Payor banks
What does it govern?
Responsibility of a payor bank for late return of an item
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Iowa