Tex. Bus. & Com. Code § 4.302 · Subchapter C. COLLECTION OF ITEMS: PAYOR BANKS
PAYOR BANK'S RESPONSIBILITY FOR LATE RETURN OF ITEM.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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) is subject to defenses based on breach of a presentment warranty (Section 4.208) or proof that the person seeking enforcement of the liability presented or transferred the item for the purpose of defrauding the payor bank.
Notes and commentary — not statutory text
History
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967. Amended by Acts 1995, 74th Leg., ch. 921, Sec. 4, eff. Jan. 1, 1996.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BC/htm/BC.4.htm
- Text hash
- sha256 cf17a87c008e582292cb2a33a19e678de339c225677be6c82f919a2e413cde1d
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Business & Commerce Code
Cited by 3 provisions
Provisions in this library whose text cites Tex. Bus. & Com. Code § 4.302. Each shows the citation as that text prints it.
Business & Commerce Code
- Tex. Bus. & Com. Code § 3.312LOST, DESTROYED, OR STOLEN CASHIER'S CHECK, TELLER'S CHECK, OR CERTIFIED CHECK.Printed as Section 4.302(a)(1)
- Tex. Bus. & Com. Code § 3.502DISHONOR.Printed as Section 4.301 or 4.302 | Section 4.302
- Tex. Bus. & Com. Code § 4.303WHEN ITEMS SUBJECT TO NOTICE, STOP-PAYMENT ORDER, LEGAL PROCESS, OR SETOFF; ORDER IN WHICH ITEMS MAY BE CHARGED OR CERTIFIED.Printed as Section 4.302
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.