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Can you summarize IACO 554.4503?
UNIFORM COMMERCIAL CODE > Responsibility of presenting bank for documents and goods report of reasons for dishonor referee in case of need.
Short Summary
This legal document governs the responsibility of a bank when presenting documentary drafts. It states that a bank 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. In case of dishonor, the presenting bank may seek instructions from any referee in case of need designated in the draft or, if not utilizing the referee’s services, must use diligence and good faith to ascertain the reason for dishonor, notify its transferor of the dishonor and the results of its effort to ascertain the reasons, and request instructions. The presenting bank is under no obligation with respect to goods represented by the documents except to follow any reasonable instructions received and has the right to reimbursement for any expenses incurred in following instructions. The document does not mention any specific penalties or exemptions.
Whom does it apply to?
Banks presenting documentary drafts
What does it govern?
Responsibility of presenting bank for documents and goods
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa