Privilege of presenting bank to deal with goods; security interest for expenses.

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(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.

(1959, P.A. 133, S. 4-504; P.A. 91-304, S. 107.)

History: P.A. 91-304 made a minor change in wording and replaced numeric with alphabetic Subsec. indicators.


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