In the absence of a valid defense such as breach of a presentment warranty (subsection (1) of Section 4--207), settlement effected or the like, if an item is presented on and received by a payor bank the bank is accountable for the amount of

(a) a demand item other than a documentary draft whether properly

payable or not if the bank, in any case where it is not also

the depositary bank, retains the item beyond midnight of the

banking day of receipt without settling for it or, regardless

of whether it is also the depositary bank, does not pay or

return the item or send notice of dishonor until after its

midnight deadline; or

(b) 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.