N.Y. UCC Law § 4-503

Section 4--503. Responsibility of Presenting Bank for Documents and\n Goods; Report of Reasons for Dishonor; Referee in Case\n of Need.\n Unless otherwise instructed and except as provided in Article 5 a bank\npresenting a documentary draft\n (a) must deliver the documents to the drawee on acceptance of the\ndraft if it is payable more than three days after presentment;\notherwise, only on payment; and\n (b) upon dishonor, either in the case of presentment for acceptance or\npresentment for payment, may seek and follow instructions from any\nreferee in case of need designated in the draft or if the presenting\nbank does not choose to utilize his services it must use diligence and\ngood faith to ascertain the reason for dishonor, must notify its\ntransferor of the dishonor and of the results of its effort to ascertain\nthe reasons therefor and must request instructions.\nBut the presenting bank is under no obligation with respect to goods\nrepresented by the documents except to follow any reasonable\ninstructions seasonably received; it has a right to reimbursement for\nany expense incurred in following instructions and to prepayment of or\nindemnity for such expenses.\n