HRS §490:4-501
Bank's duty when handling a documentary draft
This section says a bank that handles a documentary draft for collection must send it for payment or acceptance and must promptly tell its customer if the draft is not paid or accepted. This applies even if the bank already bought the draft or gave credit for it.
financial institutions
The statute, as written — Handling of documentary drafts; duty to send for presentment and to notify customer of dishonor
A bank that takes a documentary draft for collection shall present or send the draft and accompanying documents for presentment and, upon learning that the draft has not been paid or accepted in due course, shall seasonably notify its customer of such fact even though it may have discounted or bought the draft or extended credit available for withdrawal as of right.
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