U

Section 4 -302 of the Uniform Commercial Code provides: 'In the absence of a valid defense such as breach of a presentment warranty (subsection (1) of Section 4 -- 207), settlement effected or the like, if an item is presented on and received by a payor bank the bank is accountable for the amount of (a) a demand item * * * if the bank * * * retains the item beyond midnight of the banking day of receipt without settling for it or * * * does not pay or return the item or send notice of dishonor until after its midnight deadline; ...