Ask Reggi Your Question Now
Can you summarize NHRS 382-A:4-503?
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, part of the New Hampshire Revised Statutes under the Uniform Commercial Code (Chapter 382-A), governs the responsibility of a bank presenting a documentary draft. The document specifies that unless otherwise instructed and except as provided in Article 5, a bank presenting a documentary draft 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 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, notify its transferor of the dishonor and the results of its effort to ascertain the reasons, and request instructions. The presenting bank is not obligated with respect to goods represented by the documents except to follow any reasonable instructions seasonably received. It has the right to reimbursement for any expense incurred in following instructions and to prepayment of or indemnity for those expenses.
Whom does it apply to?
Banks presenting a documentary draft
What does it govern?
Responsibility of Presenting Bank for Documents and Goods; Report of Reasons for Dishonor; Referee in Case of Need.
What are exemptions?
None mentioned
What are the Penalties?
None mentioned
Jurisdiction
New Hampshire