§ 25-4-407 – Payor bank's right to subrogation on improper payment.
25-4-407. Payor bank’s right to subrogation on improper payment. If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only […]
§ 25-4-501 – Handling of documentary drafts; duty to send for presentment and to notify customer of dishonor.
25-4-501. 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 […]
§ 25-4-502 – Presentment of "on arrival" drafts.
25-4-502. 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 […]
§ 25-4-503 – Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need.
25-4-503. 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: (1) Must deliver the documents to the drawee on acceptance of the draft if it is payable more than three […]
§ 25-4-504 – Privilege of presenting bank to deal with goods; security interest for expenses.
25-4-504. Privilege of presenting bank to deal with goods; security interest for expenses. (a) 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. (b) For its reasonable […]
§ 25-4-402 – Bank's liability to customer for wrongful dishonor; time of determining insufficiency of account.
25-4-402. Bank’s liability to customer for wrongful dishonor; time of determining insufficiency of account. (a) Except as otherwise provided in this Article, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, but a bank may dishonor an item that would create an overdraft unless it has agreed to […]
§ 25-4-403 – Customer's right to stop payment; burden of proof of loss.
25-4-403. Customer’s right to stop payment; burden of proof of loss. (a) A customer or any person authorized to draw on the account if there is more than one person may stop payment of any item drawn on the customer’s account or close the account by an order to the bank describing the item or […]
§ 25-4-404 – Bank not obligated to pay check more than six months old.
25-4-404. Bank not obligated to pay check more than six months old. A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than six months after its date, but it may charge its customer’s account for a payment made […]
§ 25-4-405 – Death or incompetence of customer.
25-4-405. Death or incompetence of customer. (a) A payor or collecting bank’s authority to accept, pay, or collect an item or to account for proceeds of its collection, if otherwise effective, is not rendered ineffective by incompetence of a customer of either bank existing at the time the item is issued or its collection is […]
§ 25-4-406 – Customer's duty to discover and report unauthorized signature or alteration.
25-4-406. Customer’s duty to discover and report unauthorized signature or alteration. (a) A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either return or make available to the customer the items paid or provide information in the statement of account sufficient to […]