§12A-4-503.

§12A-4-503.
   
         RESPONSIBILITY OF PRESENTING BANK FOR DOCUMENTS AND GOODS;
                                      
          REPORT OF REASONS FOR DISHONOR; REFEREE IN CASE OF NEED
                                      
   Unless otherwise instructed and except as provided in Article 5 of
   this title, a bank presenting a documentary draft:
   
   (1) Must deliver the documents to the drawee on acceptance of the
   draft if it is payable more than three (3) days after presentment;
   otherwise, only on payment; and
   
   (2) Upon dishonor, either in the case of presentment for acceptance or
   presentment for payment, may seek and follow instructions from any
   referee in case of need designated in the draft or, if the presenting
   bank does not choose to utilize the referee's services, it must use
   diligence and good faith to ascertain the reason for dishonor, must
   notify its transferor of the dishonor and of the results of its effort
   to ascertain the reasons therefor, and must request instructions.
   
   However, the presenting bank is under no obligation with respect to
   goods represented by the documents except to follow any reasonable
   instructions seasonably received; it has a right to reimbursement for
   any expense incurred in following instructions and to prepayment of or
   indemnity for those expenses.