{"data":{"id":"us-ky/krs-355.4-302","jurisdiction":"us-ky","citation":"KRS 355.4-302","heading":"Payor bank's responsibility for late return of item.","body":"(1) If an item is presented to and received by a payor bank the bank, is accountable for\nthe amount of:\n(a) a demand item, other than a documentary draft, whether properly payable or\nnot, if the bank, in any case in which it is not also the depositary bank, re tains\nthe item beyond midnight of the banking day of receipt without settling for it\nor, whether or not it is also the depositary bank, does not pay or return the\nitem or send notice of dishonor until after its midnight deadline; or\n(b) any other properly payable item unless, within the time allowed for acceptance\nor payment of that item, the bank either accepts or pays the item or returns it\nand accompanying documents.\n(2) The liability of a payor bank to pay an item pursuant to subsection (1) of this section\nis subject to defenses based on breach of a presentment warranty (KRS 355.4 -208)\nor proof that the person seeking enforcement of the liability presented or transferred\nthe item for the purpose of defrauding the payor bank.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33542","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"226e83098a093aea777fef6ab86da9bbce26ae0e5ffffe5f4b9a8867823dd9d9","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4-301","next":"us-ky/krs-355.4-303"},"notice":"GroundRules: Original legal text. Not legal advice."}