Title 11, Chapter 4, Section 302
( 11-4-302)
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 Code section is subject to defenses based on breach of a presentment warranty (Code Section 11-4-208) or proof that the person seeking enforcement of the liability presented or transferred the item for the purpose of defrauding the payor bank. | 
