HRS §490:4-302
Payor bank's responsibility for late return of item
This section says when a bank that must pay a check or other payment item is too slow to pay, return, or reject it, the bank owes the item's amount. It also allows the bank to defend itself if the person presenting the item broke a warranty or committed fraud.
financial institutions
The statute, as written — Payor bank's responsibility for late return of item
(a) 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) 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 490:4-208) or proof that the person seeking enforcement of the liability presented or transferred the item for the purpose of defrauding the payor bank.
Sections this one refers to
§490:4-208 Warranties when a draft is presented for payment
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.