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Can you summarize MNST 336.4-302?
UNIFORM COMMERCIAL CODE > PAYOR BANK'S RESPONSIBILITY FOR LATE RETURN OF ITEM.
Short Summary
This legal document, found in the Minnesota Statutes under the Trade Regulations and Consumer Protection section of the Uniform Commercial Code, governs the responsibility of a payor bank for the late return of an item. According to the document, 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 is 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 accountable for any other properly payable item unless it accepts, pays, or returns the item and accompanying documents within the allowed time. The liability of the payor bank is subject to defenses based on breach of a presentment warranty or proof of fraudulent intent. The document does not specify any specific penalties for non-compliance or violation of its provisions.
Whom does it apply to?
Payor banks
What does it govern?
Responsibility of a payor bank for the late return of an item
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Minnesota