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December 27, 2024 Clear | 23°F
The 193rd General Court of the Commonwealth of Massachusetts
  1. General Laws
  2. Part I ADMINISTRATION OF THE GOVERNMENT
  3. Title XV REGULATION OF TRADE
  4. Chapter 106 UNIFORM COMMERCIAL CODE
  5. Article 4 BANK DEPOSITS AND COLLECTIONS
  6. Section 4-504 Privilege of Presenting Bank to Deal with Goods; Security Interest for Expenses

Section 4-504

Section 4-504: Privilege of Presenting Bank to Deal with Goods; Security Interest for Expenses

Section 4–504. (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 subsection (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.