Skip to Content
The 190th General Court of the Commonwealth of Massachusetts

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.