- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 4. Bank Deposits and Collections
- Section 302. Payor Bank's Responsibility For Late Return of Item.
previous: Section 301
. Deferred Posting; Recovery of Payment By Return of Items; Time of Dishonor; Return of Items By Payor Bank.
next: Section 303
. When Items Subject to Notice, Stop-Payment Order, Legal Process, or Setoff; Order in Which Items May Be Charged or Certified.
AS 45.04.302. Payor Bank's Responsibility For Late Return of Item.
- (a) If an item is presented to and received by a payor bank, the bank is accountable for the amount of
- (1) a demand item, other than a documentary draft, whether properly payable or not, if the bank,
- (A) in any case in which it is not also the depositary bank, retains the item beyond midnight of the banking day of
receipt without settling for it; or
- (B) whether or not it is also the depositary bank, does not pay or return the item or send notice of dishonor until after
its midnight deadline; or
- (2) 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 accompanying documents.
- (b) The liability of a payor bank to pay an item under (a) of this section is subject to defenses based on breach of a
presentment warranty under AS 45.04.208
or proof that the person seeking enforcement of the liability presented or transferred the item for the purpose of
defrauding the payor bank.
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