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ucc4

ucc4

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Published by Glenn Augenstein
UCC Article 4, and Official Comments
UCC Article 4, and Official Comments

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Published by: Glenn Augenstein on Dec 20, 2011
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U.C.C. - ARTICLE 4 - BANKDEPOSITS AND COLLECTIONS
Copyright 1978, 1987, 1988, 1990, 1991, 1992, 1998,2001, 2003 by The American Law Institute and the National Conference of Commissioners on Uniform State Laws; reproduced, published and distributed with the permission of the Permanent Editorial Board for theUniform Commercial Code for the limited purposes of  study, teaching, and academic research. Published by the Legal Information Institute
 
 , Cornell LawSchool, March 2004. For the version of this article (and other uniform laws) adopted by a particular state visit the LII's Uniform Commercial Code Locator page at:http://www.law.cornell.edu/uniform/ucc.html   Decisions and related materials in the commercial law field  generally are available at:http://www.law.cornell.edu/topics/commercial.html  
PART 1. GENERAL PROVISIONS AND DEFINITIONS
§ 4-101. SHORT TITLE.
This Article may be cited as Uniform Commercial Code -- Bank Deposits andCollections.[Comment]
§ 4-102. APPLICABILITY.
(a) To the extent thatitemswithin this Article are also within Articles 3 and 8, theyare subject to those Articles. If there is conflict, this Article governs Article 3, butArticle 8 governs this Article.(b) The liability of abankfor action or non-action with respect to anitemhandled by it for purposes of presentment, payment, or collection is governed by the law of the place where the bank is located. In the case of action or non-action by or at abranch or separate office of a bank, its liability is governed by the law of the placewhere the branch or separate office is located.
1Legal Information Institute, Cornell Law School (Mar. 2004 ed.)
 
 
§ 4-103. VARIATION BY AGREEMENT; MEASURE OFDAMAGES; ACTION CONSTITUTING ORDINARY CARE.
(a) The effect of the provisions of this Article may be varied by agreement , but theparties to the agreement cannot disclaim abank'sresponsibility for its lack of goodfaith or failure to exercise ordinary care or limit the measure of damages for thelack or failure. However, the parties may determine by agreement the standards bywhich the bank's responsibility is to be measured if those standards are notmanifestly unreasonable.(b) Federal Reserve regulations and operating circulars, clearing-house rules, andthe like have the effect of agreements under subsection (a), whether or notspecifically assented to by all parties interested initemshandled.(c) Action or non-action approved by this Article or pursuant to Federal Reserveregulations or operating circulars is the exercise of ordinary care and, in the absenceof special instructions, action or non-action consistent with clearing-house rules andthe like or with a general banking usage not disapproved by this Article, is primafacie the exercise of ordinary care.(d) The specification or approval of certain procedures by this Article is notdisapproval of other procedures that may be reasonable under the circumstances.(e) The measure of damages for failure to exercise ordinary care in handling anitem is the amount of the item reduced by an amount that could not have been realizedby the exercise of ordinary care. If there is also bad faith it includes any otherdamages the party suffered as a proximate consequence.[Comment]
§ 4-104. DEFINITIONS AND INDEX OF DEFINITIONS.
(a) In this Article, unless the context otherwise requires:(1) "
Account
" means any deposit or credit account with abank, including ademand, time, savings, passbook, sharedraft, or like account, other than anaccount evidenced by a certificate of deposit;(2) "
Afternoon
" means the period of a day between noon and midnight;(3) "
Banking day
" means the part of a day on which abankis open to thepublic for carrying on substantially all of its banking functions;(4) "
Clearing house
" means an association of banksor other payorsregularly clearingitems;
2Legal Information Institute, Cornell Law School (Mar. 2004 ed.)
 
 
(5) "
Customer
" means a person having anaccountwith abankor for whom a bank has agreed to collectitems, including a bank that maintains anaccount at another bank;(6) "
Documentary draft
" means adraftto be presented for acceptance orpayment if specified documents, certificated securities (Section8-102) orinstructions for uncertificated securities (Section8-102), or other certificates,statements, or the like are to be received by thedraweeor other payor beforeacceptance or payment of the draft;(7) "
Draft
" means adraftas defined in Section3-104or anitem, other than an instrument, that is an order.(8) "
Drawee
" means a person ordered in adraftto make payment.(9) "
Item
" means an instrument or a promise or order to pay money handledby abankfor collection or payment. The term does not include a paymentorder governed by Article 4A or a credit or debit card slip;(10) "
Midnight deadline
" with respect to abankis midnight on its nextbanking dayfollowing the banking day on which it receives the relevantitem  or notice or from which the time for taking action commences to run,whichever is later;(11) "
Settle
" means to pay in cash, by clearing-house settlement, in acharge or credit or by remittance, or otherwise as agreed. A settlement maybe either provisional or final.(12) "
Suspends payments
" with respect to abankmeans that it has beenclosed by order of the supervisory authorities, that a public officer has beenappointed to take it over, or that it ceases or refuses to make payments in theordinary course of business.(b) Other definitions applying to this Article and the sections in which they appearare:"
Agreement for electronic presentment
" Section4-110 "
Collecting bank
" Section4-105 "
Depositary bank
" Section4-105 "
Intermediary bank
" Section4-105 "
Payor bank
" Section4-105 "
Presenting bank
" Section4-105 "
Presentment notice
" Section4-110 
3Legal Information Institute, Cornell Law School (Mar. 2004 ed.)
 

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