Section 4-302 - Payor Bank's Responsibility for Late Return of Item(a) If an item is presented to and received by a payor bank, the bank is accountable for the amount of: (1) a demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case in which it is not also the depositary bank, retains the item beyond midnight of the banking day of receipt without settling for it or, whether or not it is also the depositary bank, does not pay or return the item or send notice of dishonor until after its midnight deadline; or(2) any other properly payable item unless, within the time allowed for acceptance or payment of that item, the bank either accepts or pays the item or returns it and accompanying documents.(b) The liability of a payor bank to pay an item pursuant to subsection (a) of this section is subject to defenses based on breach of presentment warranty (Section 4-208 of this title) or proof that the person seeking enforcement of the liability presented or transferred the item for the purpose of defrauding the payor bank.Okla. Stat. tit. 12A, § 4-302
Laws 1961, SB 36, p. 129, § 4-302; Amended by Laws 1991, SB 25, c. 117, § 122, eff. 1/1/1992.Oklahoma Code Comment
1. This Section is substantially identical to pre-revision Section 4-302, with the addition of the last phrase in sub section 4-302(b) which recognizes the common law defense of fraud in the presentment or transfer of the item. The introductory language of pre-revision Section 4-302 is found at the beginning of current subsection (b).
See the Oklahoma Comment to Section 4-301 for a discussion of the determination of the day of presentment and notice of dishonor. The inclusion of the fraud defenses appears to modify the holdings of Oklahoma cases dealing with this subject due to the fact that those defenses would be available even if the item was not resumed or notice of dishonor was not given until after the midnight deadline.
2. As to whether the timing for the midnight deadline begins to run when checks are presented to a separate data processing center, see Sass Trucking Inc. v. Security Bank & Trust Co., 737 P.2d 113 (Okla. 1987), and Reg. CC, 12 C.F.R. § 229.36(b) .