ARTICLE 4
BANK DEPOSITS AND COLLECTIONS

Table of Contents

Sec. 42a-4-103. Variation by agreement. Measure of damages. Action constituting ordinary care.
Sec. 42a-4-110. Electronic presentment.

PART 1
GENERAL PROVISIONS AND DEFINITIONS

      Sec. 42a-4-103. Variation by agreement. Measure of damages. Action constituting ordinary care. (a) The effect of the provisions of this article may be varied by agreement, but the parties to the agreement cannot disclaim a bank's responsibility for its lack of good faith or failure to exercise ordinary care or limit the measure of damages for the lack or failure. However, the parties may determine by agreement the standards by which the bank's responsibility is to be measured if those standards are not manifestly unreasonable.

      (b) Federal reserve and the Bureau of Consumer Financial Protection regulations and operating circulars, clearinghouse rules, and the like have the effect of agreements under subsection (a) of this section, whether or not specifically assented to by all parties interested in items handled.

      (c) Action or nonaction approved by this article or pursuant to federal reserve or the Bureau of Consumer Financial Protection regulations or operating circulars is the exercise of ordinary care and, in the absence of special instructions, action or nonaction consistent with clearinghouse rules and the like or with a general banking usage not disapproved by this article, is prima facie the exercise of ordinary care.

      (d) The specification or approval of certain procedures by this article is not disapproval of other procedures that may be reasonable under the circumstances.

      (e) The measure of damages for failure to exercise ordinary care in handling an item is the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care. If there is also bad faith it includes any other damages the party suffered as a proximate consequence.

      (1959, P.A. 133, S. 4-103; P.A. 91-304, S. 70; P.A. 11-110, S. 15.)

      History: P.A. 91-304 replaced numeric with alphabetic Subsec. indicators and made minor changes in wording; P.A. 11-110 amended Subsecs. (b) and (c) to add references to Bureau of Consumer Financial Protection and make a technical change, effective July 21, 2011.

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      Sec. 42a-4-110. Electronic presentment. (a) "Agreement for electronic presentment" means an agreement, clearinghouse rule, or Federal Reserve or the Bureau of Consumer Financial Protection regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item ("presentment notice") rather than delivery of the item itself. The agreement may provide for procedures governing retention, presentment, payment, dishonor, and other matters concerning items subject to the agreement.

      (b) Presentment of an item pursuant to an agreement for presentment is made when the presentment notice is received.

      (c) If presentment is made by presentment notice, a reference to "item" or "check" in this article means the presentment notice unless the context otherwise indicates.

      (P.A. 91-304, S. 77; P.A. 11-110, S. 16.)

      History: P.A. 11-110 amended Subsec. (a) to add reference to Bureau of Consumer Financial Protection, effective July 21, 2011.

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