§12A-4-302.

§12A-4-302.
   
            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) of this section is subject to defenses based on breach
   of presentment warranty (Section 4-208 of this title) or proof that
   the person seeking enforcement of the liability presented or
   transferred the item for the purpose of defrauding the payor bank.