554.4504  Privilege of presenting bank to deal with goods -- security interest for expenses.

1.  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.

2.  For its reasonable expenses incurred by action under subsection 1 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.

Section History: Early form

  [C66, 71, 73, 75, 77, 79, 81, § 554.4504]

Section History: Recent form

  94 Acts, ch 1167, § 116, 122

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