New Jersey Statutes 12A:4-504. Privilege of presenting bank to deal with goods; security interest for expenses
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Terms Used In New Jersey Statutes 12A:4-504
- Bank: means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company. See New Jersey Statutes 12A:4-105
- Documentary draft: means a draft to be presented for acceptance or payment if specified documents, certificated securities (12A:8-102) or instructions for uncertificated securities (12A:8-102), or other certificates, statements, or the like are to be received by the drawee or other payor before acceptance or payment of the draft. See New Jersey Statutes 12A:4-104
- Lien: A claim against real or personal property in satisfaction of a debt.
- Presenting bank: means a bank presenting an item except a payor bank. See New Jersey Statutes 12A:4-105
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. of this section, 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.
L.1995,c.28,s.2.