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S.C. Code Ann. § 36-4-302

Payor bank's responsibility for late return of item

Known as the Uniform Commercial Code

The act spans §§ 36-10-101 to 36-9-809 (519 sections).

Applied in 1 court decision — leading case South Carolina National Bank v. First Union National Bank (1993)

Most recently applied in South Carolina National Bank v. First Union National Bank (February 1993)

1962 Code SECTION 10.4-302; 1966 (54) 2716; 2008 Act No. 204, SECTION 3, eff July 1, 2008.

(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, 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, 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 pursuant to Subsection (a) is subject to defenses based on breach of a presentment warranty (Section 36-4-208) or proof that the person seeking enforcement of the liability presented or transferred the item for the purpose of defrauding the payor bank.

Official source: South Carolina Legislature. Reproduced from public-domain South Carolina statutes; confirm against the official source for the current text. Not legal advice.