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HRS §490:4-504

What a bank can do with goods after a payment is refused

If a bank presents a payment document and it is refused, the bank can ask for instructions. If no instructions come in a reasonable time, the bank may store or sell the goods. The bank can also hold a lien on the goods to cover its reasonable costs.

The statute, as written — Privilege of presenting bank to deal with goods; security interest for expenses

(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.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.