Establecimientos

§4-501. Handling of documentary drafts; duty to send for presentment and to notify

customer of dishonor

A bank that takes a documentary draft for collection shall present or send the draft and accompanying documents for presentment and, upon learning that the draft has not been paid or accepted in due course, shall seasonably notify its customer of the fact, even though it may have discounted or bought the draft or extended credit available for withdrawal as of right. [1993, c. 293, Pt. B, §45 (amd).]

PL 1993, Ch. 293, §B45 (AMD).

§4-502. Presentment of "on arrival" drafts

If a draft or the relevant instructions require presentment "on arrival," "when goods arrive" or the like, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal to pay or accept because the goods have not arrived is not dishonor; the bank must notify its transferor of the refusal but need not present the draft again until it is instructed to do so or learns of the arrival of the goods. [1993, c. 293,

Pt. B, §46 (amd).]

PL 1993, Ch. 293, §B46 (AMD).

§4-503. Responsibility of presenting bank for documents and goods; report of

reasons for dishonor; referee in case of need

Unless otherwise instructed and except as provided in Article 5, a bank presenting a documentary draft: [1993,

c. 293, Pt. B, §47 (amd).]

(1) Must deliver the documents to the drawee on acceptance of the draft, if it is payable more than 3 days after presentment; otherwise, only on payment; and

(2) Upon dishonor, either in the case of presentment for acceptance or presentment for payment, may seek and follow instruction 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, must notify its transferor of the dishonor and of the results of its effort to ascertain the reasons therefor, and must request instructions.

[1993, c. 293, Pt. B, §47 (amd).]

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 a right to reimbursement for any expense incurred in following instructions and to prepayment of or indemnity for those expenses. [1993, c. 293, Pt. B, §47 (amd).]

PL 1965, Ch. 306, §13 (AMD). PL 1993, Ch. 293, §B47 (AMD).

§4-504. Privilege of presenting bank to deal with goods; security interest for

expenses

(1) A presenting bank that, following the dishonor of a documentary draft, has seasonably requested

instructions but does not receive them within a reasonable time may store, sell or otherwise deal with the goods in any reasonable manner.

[1993, c. 293, Pt. B, §48 (amd).]

(2) For its reasonable expenses incurred by action under subsection (1) the presenting bank has a lien upon the goods or their proceeds, which may be foreclosed in the same manner as an unpaid seller's lien.

Article 4-A: FUNDS TRANSFERS (HEADING: PL 1991, c. 812, §2 (new))

Part 1: SUBJECT MATTER AND DEFINITIONS (HEADING: PL 1991, c. 812, §2 (new))

§4-1101. Short title

This Article is known and may be cited as the "Uniform Commercial Code - Funds Transfers." [1991, c. 812, §2 (new).]

PL 1991, Ch. 812, §2 (NEW).

§4-1102. Subject matter

Except as otherwise provided in section 4-1108, this Article applies to funds transfers defined in section 4-1104.

[1991, c. 812, §2 (new).]

PL 1991, Ch. 812, §2 (NEW).

§4-1103. Payment order; definitions

(1) In this Article:

(a) "Payment order" means an instruction of a sender to a receiving bank, transmitted orally, electronically or in writing, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary if:

(i) The instruction does not state a condition to payment to the beneficiary other than time of payment; (ii) The receiving bank is to be reimbursed by debiting an account of, or otherwise receiving payment from, the sender; and

(iii) The instruction is transmitted by the sender directly to the receiving bank or to an agent, funds transfer system or communication system for transmittal to the receiving bank;

[1991, c. 812, §2 (new).]

(b) "Beneficiary" means the person to be paid by the beneficiary's bank; [1991, c. 812, §2 (new).]

(c) "Beneficiary's bank" means the bank identified in a payment order in which an account of the beneficiary is to be credited pursuant to the order or which otherwise is to make payment to the beneficiary if the order does not provide for payment to an account; [1991, c. 812, §2 (new).]

(d) "Receiving bank" means the bank to which the sender's instruction is addressed; and [1991, c. 812, §2 (new).]

(e) "Sender" means the person giving the instruction to the receiving bank. [1991, c. 812, §2 (new).]

[1991, c. 812, §2 (new).]

(2) If an instruction complying with subsection (1), paragraph (a) is to make more than one payment to a beneficiary, the instruction is a separate payment order with respect to each payment.

[1991, c. 812, §2 (new).]

(3) A payment order is issued when it is sent to the receiving bank.

PL 1991, Ch. 812, §2 (NEW).

§4-1104. Funds transfer; definitions

In this Article:

(1) "Funds transfer" means the series of transactions, beginning with the originator's payment order, made for the purpose of making payment to the beneficiary of the order. The term includes any payment order issued by the originator's bank or an intermediary bank intended to carry out the originator's payment order. A funds transfer is completed by acceptance by the beneficiary's bank of a payment order for the benefit of the beneficiary of the originator's payment order;

[1991, c. 812, §2 (new).]

(2) "Intermediary bank" means a receiving bank other than the originator's bank or the beneficiary's bank;

[1991, c. 812, §2 (new).]

(3) "Originator" means the sender of the first payment order in a funds transfer; and

[1991, c. 812, §2 (new).]

(4) "Originator's bank" means:

(a) The receiving bank to which the payment order of the originator is issued if the originator is not a bank; or

[1991, c. 812, §2 (new).]

(b) The originator if the originator is a bank. [1991, c. 812, §2 (new).]

[1991, c. 812, §2 (new).]

PL 1991, Ch. 812, §2 (NEW).

§4-1105. Other definitions

(1) In this Article:

(a) "Authorized account" means a deposit account of a customer in a bank designated by the customer as a source of payment of payment orders issued by the customer to the bank. If a customer does not so designate an account, any account of the customer is an authorized account if payment of a payment order from that account is not inconsistent with a restriction on the use of that account; [1991, c. 812, §2 (new).]

(b) "Bank" means a person engaged in the business of banking and includes a savings bank, savings and loan association, credit union and trust company. A branch or separate office of a bank is a separate bank for purposes of this Article; [1991, c. 812, §2 (new).]

(c) "Customer" means a person, including a bank, having an account with a bank or from whom a bank has agreed to receive payment orders; [1991, c. 812, §2 (new).]

(d) "Funds transfer business day" of a receiving bank means the part of a day during which the receiving bank is open for the receipt, processing and transmittal of payment orders and cancellations and amendments of payment orders; [1991, c. 812, §2 (new).]

(e) "Funds transfer system" means a wire transfer network, automated clearing house or other communication system of a clearing house or other association of banks through which a payment order by a bank may be

transmitted to the bank to which the order is addressed; [1991, c. 812, §2 (new).]

(f) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing;

and [1991, c. 812, §2 (new).]

(g) "Prove" with respect to a fact means to meet the burden of establishing the fact (section 1-201, subsection (8)).

[1991, c. 812, §2 (new).]

[1991, c. 812, §2 (new).]

(2) Other definitions applying to this Article and the sections in which they appear are:

"Acceptance" Section 4-1209

"Beneficiary" Section 4-1103

"Beneficiary's bank" Section 4-1103

"Executed" Section 4-1301

"Execution date" Section 4-1301

"Funds transfer" Section 4-1104

"Funds transfer system rule" Section 4-1501

"Intermediary bank" Section 4-1104

"Originator" Section 4-1104

"Originator's bank" Section 4-1104

"Payment by beneficiary's bank to beneficiary" Section 4-1405 "Payment by originator to beneficiary" Section 4-1406 "Payment by sender to receiving bank" Section 4-1403

"Payment date" Section 4-1401

"Payment order" Section 4-1103

"Receiving bank" Section 4-1103

"Security procedure" Section 4-1201

"Sender" Section 4-1103

[1991, c. 812, §2 (new).]

(3) The following definitions in Article 4 apply to this Article:

"Clearing house" Section 4-104

"Item" Section 4-104

"Suspends payments" Section 4-104

[1991, c. 812, §2 (new).]

(4) In addition, Article 1 contains general definitions and principles of construction and interpretation applicable throughout this Article.

[1991, c. 812, §2 (new).]