Legislation
SECTION 4-504
Privilege of Presenting Bank to Deal With Goods; Security Interest for Expenses
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 4, PART 5
Section 4--504. Privilege of Presenting Bank to Deal With Goods;
Security Interest for Expenses.
(1) A presenting bank which, 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.
(2) For its reasonable expenses incurred by action under subsection
(1) the presenting bank has a lien upon the goods or their proceeds,
which may be foreclosed in the same manner as an unpaid seller's lien.
Security Interest for Expenses.
(1) A presenting bank which, 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.
(2) For its reasonable expenses incurred by action under subsection
(1) the presenting bank has a lien upon the goods or their proceeds,
which may be foreclosed in the same manner as an unpaid seller's lien.