2006 New York Code - Responsibility Of Presenting Bank For Documents And Goods; Report Of Reasons For Dishonor; Referee In Case Of Need.

 
  Section 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
    (a) must deliver the documents to the  drawee  on  acceptance  of  the
  draft  if  it  is  payable  more  than  three  days  after  presentment;
  otherwise, only on payment; and
    (b) 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 his 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.
  But 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 such expenses.