4503 - Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need.

     § 4503.  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     Division 5 (relating to letters of credit), a bank presenting a     documentary draft:            (1)  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            (2)  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 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.     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.     (July 9, 1992, P.L.507, No.97, eff. one year)