554.4302 Payor bank’s responsibility for late return of item. 1. If an item is presented to and received by a payor bank, the bank is accountable for the amount of: a. a demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case in which it is not also the depositary bank, retains the item beyondmidnight of the banking day of receipt without settling for it or, whether or not it is also thedepositary bank, does not pay or return the item or send notice of dishonor until after itsmidnight deadline; or b. any other properly payable item unless, within the time allowed for acceptance or payment of that item, the bank either accepts or pays the item or returns it and accompanyingdocuments. 2. The liability of a payor bank to pay an item pursuant to subsection 1 is subject to defenses based on breach of a presentment warranty (section 554.4208) or proof that theperson seeking enforcement of the liability presented or transferred the item for the purposeof defrauding the payor bank. [C66, 71, 73, 75, 77, 79, 81, §554.4302]94 Acts, ch 1167, §105, 122Referred to in §554.3312, 554.3502, 554.4303 Sat Dec 23 01:57:27 2023 Iowa Code 2024, Section e purposeof defrauding the payor bank. [C66, 71, 73, 75, 77, 79, 81, §554.4302]94 Acts, ch 1167, §105, 122Referred to in §554.3312, 554.3502, 554.4303 Sat Dec 23 01:57:27 2023 Iowa Code 2024, Section 554.4302 (24, 0)
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