HRS 0490-0004-0503 ANNOTATIONS

Prior Uniform Statutory Provision: Section 131(3), Uniform Negotiable Instruments Law.

Changes: Completely rewritten and enlarged.

Purposes:

1. To state the rules governing, in the absence of instructions, the duty of the presenting bank in case either of honor or of dishonor of a documentary draft. The section should be read in connection with Section 2-514 on when documents are deliverable on acceptance, when on payment.

2. If the draft is drawn under a letter of credit, Article 5 controls. See Sections 5-109 through 5-114.

Point 1. Section 2-514; see also Section 4-504.

Point 2. Article 5, especially Sections 5-109 through 5-114.

"Documentary draft". Sections 4-104, 5-103.

"Presenting bank". Section 4-105.