                                 CODE OF VIRGINIA

RESPONSIBILITY OF PRESENTING BANK FOR DOCUMENTS AND GOODS; REPORT OF REASONS FOR
DISHONOR; REFEREE IN CASE OF NEED (§ 8.4-503)

Unless otherwise instructed and except as provided in Title 8.5A, 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 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&#8217;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.

HISTORY: 1964, c. 219; 1992, c. 693.