Terms Used In Vermont Statutes Title 9 Sec. 4-504

  • Documentary draft: means a draft to be presented for acceptance or payment if specified documents, certificated securities (§ 8—102) or instructions for uncertificated securities (§ 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;

  • following: when used by way of reference to a section of the law shall mean the next preceding or following section. See
  • Lien: A claim against real or personal property in satisfaction of a debt.

§ 4—504. Privilege of presenting bank to deal with goods; security interest for expenses

(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. (Added 1993, No. 158 (Adj. Sess.), § 13, eff. Jan. 1, 1995.)