California · Commercial Code

COM §4504: (a) A presenting bank that, 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 w

What this law says, in plain English

A presenting bank that requests instructions after a documentary draft is dishonored may store, sell, or otherwise deal with the draft if no instructions arrive within a reasonable time.

Read the full statutory text

(a) A presenting bank that, 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. (b) For its reasonable expenses incurred by action under subdivision (a), 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.

Verify at the official source: California legislative text

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