554.4503 Responsibility of presenting bank for documents and goods — report of reasons for dishonor — referee in case of need. 1. Unless otherwise instructed and except as provided in Article 5, a bank presenting a documentary draft: a. 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; and b. upon dishonor, either in the case of presentment for acceptance or presentment for payment, may seek and follow instructions from any referee in case of need designated inthe draft or, if the presenting bank does not choose to utilize the referee’s services, it mustuse diligence and good faith to ascertain the reason for dishonor, must notify its transferor ofthe dishonor and of the results of its effort to ascertain the reasons therefor, and must requestinstructions. 2. However, the presenting bank is under no obligation with respect to goods represented by the documents except to follow any reasonable instructions seasonably received; it has aright to reimbursement for any expense incurred in following instructions and to prepaymentof or indemnity for those expenses. xcept to follow any reasonable instructions seasonably received; it has aright to reimbursement for any expense incurred in following instructions and to prepaymentof or indemnity for those expenses. [S13, §3060-a131, 3138-b40; C24, 27, 31, 35, 39, §8285, 9592; C46, 50, 54, 58, 62, §487.41, 541.132; C66, 71, 73, 75, 77, 79, 81, §554.4503] 94 Acts, ch 1167, §115, 122; 2009 Acts, ch 41, §263 Sat Dec 23 01:57:33 2023 Iowa Code 2024, Section 554.4503 (24, 0)
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