(810 ILCS 5/4-503) (from Ch. 26, par. 4-503)
Sec. 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 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 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.
(Source: P.A. 87-582; 87-1135.)
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