2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 43 - Collection of Items: Payor Banks
Section 4302 - Responsibility of payor bank for late return of item

     § 4302.  Responsibility of payor bank for late return of item.
        (a)  General rule.--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)  Liability of payor bank subject to certain defenses.--
     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 4208) or proof that the person
     seeking enforcement of the liability presented or transferred
     the item for the purpose of defrauding the payor bank.
     (July 9, 1992, P.L.507, No.97, eff. one year)

        Cross References.  Section 4302 is referred to in sections
     3312, 3502, 4303 of this title.