74.1060 Payablethrough or payable at bank; collecting bank
74.1070 Separateoffice of bank for computing time for actions, notices and orders
74.1080 Timeof receipt of items
74.1090 Waiverof time limits; when delay excused
74.1110 Statuteof limitations
74.1120 Electronicpresentment
COLLECTIONOF ITEMS
(Depositaryand Collecting Banks)
74.2010 Statusof collecting bank as agent and provisional status of credits; applicability ofchapter; item indorsed “pay any bank”
74.2020 Responsibilityfor collection; when action timely
74.2030 Effectof instructions
74.2040 Methodsof sending and presenting; presentment
74.2050 Depositarybank as holder of unindorsed item
74.2060 Transferbetween banks
74.2070 Warrantiesof customer and collecting bank on transfer of item; dishonor of item;remedies; when claim accrues
74.2080 Presentmentwarranties; remedies; defenses; payment of dishonored draft; warrantydisclaimer not applicable to checks; when warranty claim accrues
74.2100 Securityinterest of collecting bank in items; priority
74.2110 Bankas holder in due course
74.2120 Presentmentby notice of item not payable by, through or at bank; liability of drawer orindorser
74.2130 Mediumand time of settlement by bank
74.2140 Rightof charge-back or refund; liability of collecting bank; return of item
74.2150 Finalpayment of item by payor bank; when provisional debits and credits becomefinal; when certain credits become available for withdrawal
74.2160 Insolvencyand preference
(PayorBanks)
74.3010 Deferredposting; recovery of payment by return of items; time of dishonor; return ofitems by payor bank
74.3020 Payorbank’s responsibility for late return of item; defenses to liability of payorbank
74.3030 Whenitems subject to notice, stop payment order, legal process or setoff; order inwhich items may be charged or certified; cutoff hour for checks
RELATIONSHIPBETWEEN PAYOR BANK AND ITS CUSTOMER
74.4010 Whenbank may charge customer’s account
74.4020 Bank’sliability to customer for wrongful dishonor; time of determining insufficiencyof account
74.4030 Customer’sright to stop payment; duration of stop payment order; burden of proof of loss
74.4040 Banknot obligated to pay check more than six months old
74.4050 Deathor incompetence of customer
74.4060 Statementsto customer; requirements; retaining copies of items; duty of customer todetermine unauthorized payment; allocation of loss
74.4070 Payorbank’s right to subrogation on improper payment
COLLECTIONOF DOCUMENTARY DRAFTS
74.5010 Handlingof documentary drafts; duty to send for presentment and to notify customer ofdishonor
74.5020 Presentmentof “on arrival” drafts
74.5030 Responsibilityof presenting bank for documents and goods; report of reasons for dishonor;referee in case of need
74.5040 Privilegeof presenting bank to deal with goods; security interest for expenses
74.560,74.570, 74.580, 74.590 [Repealed by 1961 c.726 §427]
GENERALPROVISIONS
74.1010Short title.This chapter may be cited as Uniform Commercial Code–Bank Deposits andCollections. [1961 c.726 §74.1010]
74.1020Applicability.(1) To the extent that items within this chapter are also within ORS chapters73 and 78, they are subject to those chapters. If there is conflict, thischapter and ORS chapter 78 govern ORS chapter 73.
(2)The liability of a bank for action or nonaction with respect to an item handledby it for purposes of presentment, payment or collection is governed by the lawof the place where the bank is located. In the case of action or nonaction byor at a branch or separate office of a bank, its liability is governed by thelaw of the place where the branch or separate office is located. [1961 c.726 §74.1020;1993 c.545 §73; 1995 c.79 §25]
74.1030Variation by agreement; measure of damages; action constituting ordinary care. (1) The effectof the provisions of this chapter may be varied by agreement, but the partiesto the agreement cannot disclaim a bank’s responsibility for its lack of goodfaith or failure to exercise ordinary care or limit the measure of damages forthe lack or failure. However, the parties may determine by agreement thestandards by which the bank’s responsibility is to be measured if thosestandards are not manifestly unreasonable.
(2)Federal reserve regulations and operating circulars, clearing house rules, andthe like have the effect of agreements under subsection (1) of this sectionwhether or not specifically assented to by all parties interested in itemshandled.
(3)Action or nonaction approved by this chapter or pursuant to Federal Reserveregulations or operating circulars is the exercise of ordinary care and, in theabsence of special instructions, action or nonaction consistent with clearinghouse rules and the like or with a general banking usage not disapproved bythis chapter, is prima facie the exercise of ordinary care.
(4)The specification or approval of certain procedures by this chapter is notdisapproval of other procedures that may be reasonable under the circumstances.
(5)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 beenrealized by the exercise of ordinary care. If there is bad faith it includesany other damages the party suffered as a proximate consequence. [1961 c.726 §74.1030;1993 c.545 §74]
74.1040Definitions and index of definitions. (1) In this chapter, unless the contextotherwise requires:
(a)“Account” means any deposit or credit account with a bank, including a demand,time, savings, passbook, share draft or like account, other than an accountevidenced by a certificate of deposit.
(b)“Afternoon” means the period of a day between noon and midnight.
(c)“Banking day” has the meaning given that term in ORS 708A.650.
(d)“Clearing house” means an association of banks or other payors regularlyclearing items.
(e)“Customer” means a person having an account with a bank or for whom a bank hasagreed to collect items, including a bank that maintains an account at anotherbank.
(f)“Documentary draft” means a draft to be presented for acceptance or payment ifspecified documents, certificated securities defined in ORS 78.1020 orinstructions for uncertificated securities described in ORS 78.1020, or othercertificates, statements or the like are to be received by the drawee or otherpayor before acceptance or payment of the draft.
(g)“Draft” means a draft as defined in ORS 73.0104 or an item, other than aninstrument, that is an order.
(h)“Drawee” means a person ordered in a draft to make payment.
(i)“Item” means an instrument or a promise or order to pay money handled by a bankfor collection or payment. The term does not include a payment order governedby ORS chapter 74A or a credit or debit card slip.
(j)“Midnight deadline” with respect to a bank is midnight on its next banking dayfollowing the banking day on which it receives the relevant item or notice orfrom which the time for taking action commences to run, whichever is later.
(k)“Settle” means to pay in cash, by clearing house settlement, in a charge orcredit or by remittance, or otherwise as agreed. A settlement may be eitherprovisional or final.
(L)“Suspends payments” with respect to a bank means that it has been closed byorder of the supervisory authorities, that a public officer has been appointedto take it over, or that it ceases or refuses to make payments in the ordinarycourse of business.
(2)Other definitions applying to this chapter and the sections in which theyappear are:
(a)“Agreement for electronic presentment,” as defined in ORS 74.1100.
(b)“Bank,” as defined in ORS 74.1050.
(c)“Collecting bank,” as defined in ORS 74.1050.
(d)“Depositary bank,” as defined in ORS 74.1050.
(e)“Intermediary bank,” as defined in ORS 74.1050.
(f)“Payor bank,” as defined in ORS 74.1050.
(g)“Presenting bank,” as defined in ORS 74.1050.
(h)“Presentment notice,” as defined in ORS 74.1100.
(3)“Control” as provided in ORS 77.1060 and the following definitions in othersections apply to this chapter:
(a)“Acceptance,” as defined in ORS 73.0409.
(b)“Alteration,” as defined in ORS 73.0407.
(c)“Cashier’s check,” as defined in ORS 73.0104.
(d)“Certificate of deposit,” as defined in ORS 73.0104.
(e)“Certified check,” as defined in ORS 73.0409.
(f)“Check,” as defined in ORS 73.0104.
(g)“Holder in due course,” as defined in ORS 73.0302.
(h)“Instrument,” as defined in ORS 73.0104.
(i)“Notice of dishonor,” as defined in ORS 73.0503.
(j)“Order,” as defined in ORS 73.0103.
(k)“Ordinary care,” as defined in ORS 73.0103.
(L)“Person entitled to enforce,” as defined in ORS 73.0301.
(m)“Presentment,” as defined in ORS 73.0501.
(n)“Promise,” as defined in ORS 73.0103.
(o)“Prove,” as defined in ORS 73.0103.
(p)“Teller’s check,” as defined in ORS 73.0104.
(q)“Unauthorized signature,” as defined in ORS 73.0403.
(4)In addition, ORS chapter 71 contains general definitions and principles ofconstruction and interpretation applicable throughout this chapter. [1961 c.726§74.1040; 1993 c.220 §1; 1993 c.545 §75; 1995 c.328 §67; 1997 c.631 §379; 2009c.181 §45]
(1)“Bank” means a financial institution, as defined in ORS 706.008.
(2)“Depositary bank” means the first bank to take an item even though it is alsothe payor bank unless the item is presented for immediate payment over thecounter.
(3)“Payor bank” means a bank that is the drawee of a draft.
(4)“Intermediary bank” means a bank to which an item is transferred in course ofcollection except the depositary or payor bank.
(5)“Collecting bank” means a bank handling an item for collection except the payorbank.
(6)“Presenting bank” means a bank presenting an item except a payor bank. [1961c.726 §74.1050; 1993 c.545 §76; 1997 c.631 §380]
74.1060Payable through or payable at bank; collecting bank. (1) If an itemstates that it is “payable through” a bank identified in the item:
(a)The item designates the bank as a collecting bank and does not by itselfauthorize the bank to pay the item; and
(b)The item may be presented for payment only by or through the bank.
(2)If an item states that it is “payable at” a bank identified in the item:
(a)The item designates the bank as a collecting bank and does not by itselfauthorize the bank to pay the item; and
(b)The item may be presented for payment only by or through the bank.
(3)If a draft names a nonbank drawee and it is unclear whether a bank named in thedraft is a co-drawee or a collecting bank, the bank is a collecting bank. [1961c.726 §74.1060; 1963 c.402 §2; 1993 c.545 §77]
74.1070Separate office of bank for computing time for actions, notices and orders. A bank orseparate office of a bank is a separate bank for the purpose of computing thetime within which and determining the place at or to which action may be takenor notices or orders must be given under this chapter and ORS chapter 73. [1961c.726 §74.1070; 1993 c.545 §78]
74.1080Time of receipt of items. (1) For the purpose of allowing time to processitems, prove balances and make the necessary entries on its books to determineits position for a day, a bank may fix an afternoon hour of 2 p.m. orlater as a cut-off hour for the handling of money and items and the making ofentries on its books.
(2)An item or deposit of money received on any day after a cut-off hour so fixedor after the close of the banking day may be treated as being received at theopening of the next banking day. [1961 c.726 §74.1080; 1993 c.545 §79]
74.1090Waiver of time limits; when delay excused. (1) Unless otherwise instructed,a collecting bank in a good faith effort to secure payment of a specific itemdrawn on a payor other than a bank, and with or without the approval
74.1060 Payablethrough or payable at bank; collecting bank
74.1070 Separateoffice of bank for computing time for actions, notices and orders
74.1080 Timeof receipt of items
74.1090 Waiverof time limits; when delay excused
74.1110 Statuteof limitations
74.1120 Electronicpresentment
COLLECTIONOF ITEMS
(Depositaryand Collecting Banks)
74.2010 Statusof collecting bank as agent and provisional status of credits; applicability ofchapter; item indorsed “pay any bank”
74.2020 Responsibilityfor collection; when action timely
74.2030 Effectof instructions
74.2040 Methodsof sending and presenting; presentment
74.2050 Depositarybank as holder of unindorsed item
74.2060 Transferbetween banks
74.2070 Warrantiesof customer and collecting bank on transfer of item; dishonor of item;remedies; when claim accrues
74.2080 Presentmentwarranties; remedies; defenses; payment of dishonored draft; warrantydisclaimer not applicable to checks; when warranty claim accrues
74.2100 Securityinterest of collecting bank in items; priority
74.2110 Bankas holder in due course
74.2120 Presentmentby notice of item not payable by, through or at bank; liability of drawer orindorser
74.2130 Mediumand time of settlement by bank
74.2140 Rightof charge-back or refund; liability of collecting bank; return of item
74.2150 Finalpayment of item by payor bank; when provisional debits and credits becomefinal; when certain credits become available for withdrawal
74.2160 Insolvencyand preference
(PayorBanks)
74.3010 Deferredposting; recovery of payment by return of items; time of dishonor; return ofitems by payor bank
74.3020 Payorbank’s responsibility for late return of item; defenses to liability of payorbank
74.3030 Whenitems subject to notice, stop payment order, legal process or setoff; order inwhich items may be charged or certified; cutoff hour for checks
RELATIONSHIPBETWEEN PAYOR BANK AND ITS CUSTOMER
74.4010 Whenbank may charge customer’s account
74.4020 Bank’sliability to customer for wrongful dishonor; time of determining insufficiencyof account
74.4030 Customer’sright to stop payment; duration of stop payment order; burden of proof of loss
74.4040 Banknot obligated to pay check more than six months old
74.4050 Deathor incompetence of customer
74.4060 Statementsto customer; requirements; retaining copies of items; duty of customer todetermine unauthorized payment; allocation of loss
74.4070 Payorbank’s right to subrogation on improper payment
COLLECTIONOF DOCUMENTARY DRAFTS
74.5010 Handlingof documentary drafts; duty to send for presentment and to notify customer ofdishonor
74.5020 Presentmentof “on arrival” drafts
74.5030 Responsibilityof presenting bank for documents and goods; report of reasons for dishonor;referee in case of need
74.5040 Privilegeof presenting bank to deal with goods; security interest for expenses
74.560,74.570, 74.580, 74.590 [Repealed by 1961 c.726 §427]
GENERALPROVISIONS
74.1010Short title.This chapter may be cited as Uniform Commercial Code–Bank Deposits andCollections. [1961 c.726 §74.1010]
74.1020Applicability.(1) To the extent that items within this chapter are also within ORS chapters73 and 78, they are subject to those chapters. If there is conflict, thischapter and ORS chapter 78 govern ORS chapter 73.
(2)The liability of a bank for action or nonaction with respect to an item handledby it for purposes of presentment, payment or collection is governed by the lawof the place where the bank is located. In the case of action or nonaction byor at a branch or separate office of a bank, its liability is governed by thelaw of the place where the branch or separate office is located. [1961 c.726 §74.1020;1993 c.545 §73; 1995 c.79 §25]
74.1030Variation by agreement; measure of damages; action constituting ordinary care. (1) The effectof the provisions of this chapter may be varied by agreement, but the partiesto the agreement cannot disclaim a bank’s responsibility for its lack of goodfaith or failure to exercise ordinary care or limit the measure of damages forthe lack or failure. However, the parties may determine by agreement thestandards by which the bank’s responsibility is to be measured if thosestandards are not manifestly unreasonable.
(2)Federal reserve regulations and operating circulars, clearing house rules, andthe like have the effect of agreements under subsection (1) of this sectionwhether or not specifically assented to by all parties interested in itemshandled.
(3)Action or nonaction approved by this chapter or pursuant to Federal Reserveregulations or operating circulars is the exercise of ordinary care and, in theabsence of special instructions, action or nonaction consistent with clearinghouse rules and the like or with a general banking usage not disapproved bythis chapter, is prima facie the exercise of ordinary care.
(4)The specification or approval of certain procedures by this chapter is notdisapproval of other procedures that may be reasonable under the circumstances.
(5)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 beenrealized by the exercise of ordinary care. If there is bad faith it includesany other damages the party suffered as a proximate consequence. [1961 c.726 §74.1030;1993 c.545 §74]
74.1040Definitions and index of definitions. (1) In this chapter, unless the contextotherwise requires:
(a)“Account” means any deposit or credit account with a bank, including a demand,time, savings, passbook, share draft or like account, other than an accountevidenced by a certificate of deposit.
(b)“Afternoon” means the period of a day between noon and midnight.
(c)“Banking day” has the meaning given that term in ORS 708A.650.
(d)“Clearing house” means an association of banks or other payors regularlyclearing items.
(e)“Customer” means a person having an account with a bank or for whom a bank hasagreed to collect items, including a bank that maintains an account at anotherbank.
(f)“Documentary draft” means a draft to be presented for acceptance or payment ifspecified documents, certificated securities defined in ORS 78.1020 orinstructions for uncertificated securities described in ORS 78.1020, or othercertificates, statements or the like are to be received by the drawee or otherpayor before acceptance or payment of the draft.
(g)“Draft” means a draft as defined in ORS 73.0104 or an item, other than aninstrument, that is an order.
(h)“Drawee” means a person ordered in a draft to make payment.
(i)“Item” means an instrument or a promise or order to pay money handled by a bankfor collection or payment. The term does not include a payment order governedby ORS chapter 74A or a credit or debit card slip.
(j)“Midnight deadline” with respect to a bank is midnight on its next banking dayfollowing the banking day on which it receives the relevant item or notice orfrom which the time for taking action commences to run, whichever is later.
(k)“Settle” means to pay in cash, by clearing house settlement, in a charge orcredit or by remittance, or otherwise as agreed. A settlement may be eitherprovisional or final.
(L)“Suspends payments” with respect to a bank means that it has been closed byorder of the supervisory authorities, that a public officer has been appointedto take it over, or that it ceases or refuses to make payments in the ordinarycourse of business.
(2)Other definitions applying to this chapter and the sections in which theyappear are:
(a)“Agreement for electronic presentment,” as defined in ORS 74.1100.
(b)“Bank,” as defined in ORS 74.1050.
(c)“Collecting bank,” as defined in ORS 74.1050.
(d)“Depositary bank,” as defined in ORS 74.1050.
(e)“Intermediary bank,” as defined in ORS 74.1050.
(f)“Payor bank,” as defined in ORS 74.1050.
(g)“Presenting bank,” as defined in ORS 74.1050.
(h)“Presentment notice,” as defined in ORS 74.1100.
(3)“Control” as provided in ORS 77.1060 and the following definitions in othersections apply to this chapter:
(a)“Acceptance,” as defined in ORS 73.0409.
(b)“Alteration,” as defined in ORS 73.0407.
(c)“Cashier’s check,” as defined in ORS 73.0104.
(d)“Certificate of deposit,” as defined in ORS 73.0104.
(e)“Certified check,” as defined in ORS 73.0409.
(f)“Check,” as defined in ORS 73.0104.
(g)“Holder in due course,” as defined in ORS 73.0302.
(h)“Instrument,” as defined in ORS 73.0104.
(i)“Notice of dishonor,” as defined in ORS 73.0503.
(j)“Order,” as defined in ORS 73.0103.
(k)“Ordinary care,” as defined in ORS 73.0103.
(L)“Person entitled to enforce,” as defined in ORS 73.0301.
(m)“Presentment,” as defined in ORS 73.0501.
(n)“Promise,” as defined in ORS 73.0103.
(o)“Prove,” as defined in ORS 73.0103.
(p)“Teller’s check,” as defined in ORS 73.0104.
(q)“Unauthorized signature,” as defined in ORS 73.0403.
(4)In addition, ORS chapter 71 contains general definitions and principles ofconstruction and interpretation applicable throughout this chapter. [1961 c.726§74.1040; 1993 c.220 §1; 1993 c.545 §75; 1995 c.328 §67; 1997 c.631 §379; 2009c.181 §45]
(1)“Bank” means a financial institution, as defined in ORS 706.008.
(2)“Depositary bank” means the first bank to take an item even though it is alsothe payor bank unless the item is presented for immediate payment over thecounter.
(3)“Payor bank” means a bank that is the drawee of a draft.
(4)“Intermediary bank” means a bank to which an item is transferred in course ofcollection except the depositary or payor bank.
(5)“Collecting bank” means a bank handling an item for collection except the payorbank.
(6)“Presenting bank” means a bank presenting an item except a payor bank. [1961c.726 §74.1050; 1993 c.545 §76; 1997 c.631 §380]
74.1060Payable through or payable at bank; collecting bank. (1) If an itemstates that it is “payable through” a bank identified in the item:
(a)The item designates the bank as a collecting bank and does not by itselfauthorize the bank to pay the item; and
(b)The item may be presented for payment only by or through the bank.
(2)If an item states that it is “payable at” a bank identified in the item:
(a)The item designates the bank as a collecting bank and does not by itselfauthorize the bank to pay the item; and
(b)The item may be presented for payment only by or through the bank.
(3)If a draft names a nonbank drawee and it is unclear whether a bank named in thedraft is a co-drawee or a collecting bank, the bank is a collecting bank. [1961c.726 §74.1060; 1963 c.402 §2; 1993 c.545 §77]
74.1070Separate office of bank for computing time for actions, notices and orders. A bank orseparate office of a bank is a separate bank for the purpose of computing thetime within which and determining the place at or to which action may be takenor notices or orders must be given under this chapter and ORS chapter 73. [1961c.726 §74.1070; 1993 c.545 §78]
74.1080Time of receipt of items. (1) For the purpose of allowing time to processitems, prove balances and make the necessary entries on its books to determineits position for a day, a bank may fix an afternoon hour of 2 p.m. orlater as a cut-off hour for the handling of money and items and the making ofentries on its books.
(2)An item or deposit of money received on any day after a cut-off hour so fixedor after the close of the banking day may be treated as being received at theopening of the next banking day. [1961 c.726 §74.1080; 1993 c.545 §79]
74.1090Waiver of time limits; when delay excused. (1) Unless otherwise instructed,a collecting bank in a good faith effort to secure payment of a specific itemdrawn on a payor other than a bank, and with or without the approval
74.1060 Payablethrough or payable at bank; collecting bank
74.1070 Separateoffice of bank for computing time for actions, notices and orders
74.1080 Timeof receipt of items
74.1090 Waiverof time limits; when delay excused
74.1110 Statuteof limitations
74.1120 Electronicpresentment
COLLECTIONOF ITEMS
(Depositaryand Collecting Banks)
74.2010 Statusof collecting bank as agent and provisional status of credits; applicability ofchapter; item indorsed “pay any bank”
74.2020 Responsibilityfor collection; when action timely
74.2030 Effectof instructions
74.2040 Methodsof sending and presenting; presentment
74.2050 Depositarybank as holder of unindorsed item
74.2060 Transferbetween banks
74.2070 Warrantiesof customer and collecting bank on transfer of item; dishonor of item;remedies; when claim accrues
74.2080 Presentmentwarranties; remedies; defenses; payment of dishonored draft; warrantydisclaimer not applicable to checks; when warranty claim accrues
74.2100 Securityinterest of collecting bank in items; priority
74.2110 Bankas holder in due course
74.2120 Presentmentby notice of item not payable by, through or at bank; liability of drawer orindorser
74.2130 Mediumand time of settlement by bank
74.2140 Rightof charge-back or refund; liability of collecting bank; return of item
74.2150 Finalpayment of item by payor bank; when provisional debits and credits becomefinal; when certain credits become available for withdrawal
74.2160 Insolvencyand preference
(PayorBanks)
74.3010 Deferredposting; recovery of payment by return of items; time of dishonor; return ofitems by payor bank
74.3020 Payorbank’s responsibility for late return of item; defenses to liability of payorbank
74.3030 Whenitems subject to notice, stop payment order, legal process or setoff; order inwhich items may be charged or certified; cutoff hour for checks
RELATIONSHIPBETWEEN PAYOR BANK AND ITS CUSTOMER
74.4010 Whenbank may charge customer’s account
74.4020 Bank’sliability to customer for wrongful dishonor; time of determining insufficiencyof account
74.4030 Customer’sright to stop payment; duration of stop payment order; burden of proof of loss
74.4040 Banknot obligated to pay check more than six months old
74.4050 Deathor incompetence of customer
74.4060 Statementsto customer; requirements; retaining copies of items; duty of customer todetermine unauthorized payment; allocation of loss
74.4070 Payorbank’s right to subrogation on improper payment
COLLECTIONOF DOCUMENTARY DRAFTS
74.5010 Handlingof documentary drafts; duty to send for presentment and to notify customer ofdishonor
74.5020 Presentmentof “on arrival” drafts
74.5030 Responsibilityof presenting bank for documents and goods; report of reasons for dishonor;referee in case of need
74.5040 Privilegeof presenting bank to deal with goods; security interest for expenses
74.560,74.570, 74.580, 74.590 [Repealed by 1961 c.726 §427]
GENERALPROVISIONS
74.1010Short title.This chapter may be cited as Uniform Commercial Code–Bank Deposits andCollections. [1961 c.726 §74.1010]
74.1020Applicability.(1) To the extent that items within this chapter are also within ORS chapters73 and 78, they are subject to those chapters. If there is conflict, thischapter and ORS chapter 78 govern ORS chapter 73.
(2)The liability of a bank for action or nonaction with respect to an item handledby it for purposes of presentment, payment or collection is governed by the lawof the place where the bank is located. In the case of action or nonaction byor at a branch or separate office of a bank, its liability is governed by thelaw of the place where the branch or separate office is located. [1961 c.726 §74.1020;1993 c.545 §73; 1995 c.79 §25]
74.1030Variation by agreement; measure of damages; action constituting ordinary care. (1) The effectof the provisions of this chapter may be varied by agreement, but the partiesto the agreement cannot disclaim a bank’s responsibility for its lack of goodfaith or failure to exercise ordinary care or limit the measure of damages forthe lack or failure. However, the parties may determine by agreement thestandards by which the bank’s responsibility is to be measured if thosestandards are not manifestly unreasonable.
(2)Federal reserve regulations and operating circulars, clearing house rules, andthe like have the effect of agreements under subsection (1) of this sectionwhether or not specifically assented to by all parties interested in itemshandled.
(3)Action or nonaction approved by this chapter or pursuant to Federal Reserveregulations or operating circulars is the exercise of ordinary care and, in theabsence of special instructions, action or nonaction consistent with clearinghouse rules and the like or with a general banking usage not disapproved bythis chapter, is prima facie the exercise of ordinary care.
(4)The specification or approval of certain procedures by this chapter is notdisapproval of other procedures that may be reasonable under the circumstances.
(5)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 beenrealized by the exercise of ordinary care. If there is bad faith it includesany other damages the party suffered as a proximate consequence. [1961 c.726 §74.1030;1993 c.545 §74]
74.1040Definitions and index of definitions. (1) In this chapter, unless the contextotherwise requires:
(a)“Account” means any deposit or credit account with a bank, including a demand,time, savings, passbook, share draft or like account, other than an accountevidenced by a certificate of deposit.
(b)“Afternoon” means the period of a day between noon and midnight.
(c)“Banking day” has the meaning given that term in ORS 708A.650.
(d)“Clearing house” means an association of banks or other payors regularlyclearing items.
(e)“Customer” means a person having an account with a bank or for whom a bank hasagreed to collect items, including a bank that maintains an account at anotherbank.
(f)“Documentary draft” means a draft to be presented for acceptance or payment ifspecified documents, certificated securities defined in ORS 78.1020 orinstructions for uncertificated securities described in ORS 78.1020, or othercertificates, statements or the like are to be received by the drawee or otherpayor before acceptance or payment of the draft.
(g)“Draft” means a draft as defined in ORS 73.0104 or an item, other than aninstrument, that is an order.
(h)“Drawee” means a person ordered in a draft to make payment.
(i)“Item” means an instrument or a promise or order to pay money handled by a bankfor collection or payment. The term does not include a payment order governedby ORS chapter 74A or a credit or debit card slip.
(j)“Midnight deadline” with respect to a bank is midnight on its next banking dayfollowing the banking day on which it receives the relevant item or notice orfrom which the time for taking action commences to run, whichever is later.
(k)“Settle” means to pay in cash, by clearing house settlement, in a charge orcredit or by remittance, or otherwise as agreed. A settlement may be eitherprovisional or final.
(L)“Suspends payments” with respect to a bank means that it has been closed byorder of the supervisory authorities, that a public officer has been appointedto take it over, or that it ceases or refuses to make payments in the ordinarycourse of business.
(2)Other definitions applying to this chapter and the sections in which theyappear are:
(a)“Agreement for electronic presentment,” as defined in ORS 74.1100.
(b)“Bank,” as defined in ORS 74.1050.
(c)“Collecting bank,” as defined in ORS 74.1050.
(d)“Depositary bank,” as defined in ORS 74.1050.
(e)“Intermediary bank,” as defined in ORS 74.1050.
(f)“Payor bank,” as defined in ORS 74.1050.
(g)“Presenting bank,” as defined in ORS 74.1050.
(h)“Presentment notice,” as defined in ORS 74.1100.
(3)“Control” as provided in ORS 77.1060 and the following definitions in othersections apply to this chapter:
(a)“Acceptance,” as defined in ORS 73.0409.
(b)“Alteration,” as defined in ORS 73.0407.
(c)“Cashier’s check,” as defined in ORS 73.0104.
(d)“Certificate of deposit,” as defined in ORS 73.0104.
(e)“Certified check,” as defined in ORS 73.0409.
(f)“Check,” as defined in ORS 73.0104.
(g)“Holder in due course,” as defined in ORS 73.0302.
(h)“Instrument,” as defined in ORS 73.0104.
(i)“Notice of dishonor,” as defined in ORS 73.0503.
(j)“Order,” as defined in ORS 73.0103.
(k)“Ordinary care,” as defined in ORS 73.0103.
(L)“Person entitled to enforce,” as defined in ORS 73.0301.
(m)“Presentment,” as defined in ORS 73.0501.
(n)“Promise,” as defined in ORS 73.0103.
(o)“Prove,” as defined in ORS 73.0103.
(p)“Teller’s check,” as defined in ORS 73.0104.
(q)“Unauthorized signature,” as defined in ORS 73.0403.
(4)In addition, ORS chapter 71 contains general definitions and principles ofconstruction and interpretation applicable throughout this chapter. [1961 c.726§74.1040; 1993 c.220 §1; 1993 c.545 §75; 1995 c.328 §67; 1997 c.631 §379; 2009c.181 §45]
(1)“Bank” means a financial institution, as defined in ORS 706.008.
(2)“Depositary bank” means the first bank to take an item even though it is alsothe payor bank unless the item is presented for immediate payment over thecounter.
(3)“Payor bank” means a bank that is the drawee of a draft.
(4)“Intermediary bank” means a bank to which an item is transferred in course ofcollection except the depositary or payor bank.
(5)“Collecting bank” means a bank handling an item for collection except the payorbank.
(6)“Presenting bank” means a bank presenting an item except a payor bank. [1961c.726 §74.1050; 1993 c.545 §76; 1997 c.631 §380]
74.1060Payable through or payable at bank; collecting bank. (1) If an itemstates that it is “payable through” a bank identified in the item:
(a)The item designates the bank as a collecting bank and does not by itselfauthorize the bank to pay the item; and
(b)The item may be presented for payment only by or through the bank.
(2)If an item states that it is “payable at” a bank identified in the item:
(a)The item designates the bank as a collecting bank and does not by itselfauthorize the bank to pay the item; and
(b)The item may be presented for payment only by or through the bank.
(3)If a draft names a nonbank drawee and it is unclear whether a bank named in thedraft is a co-drawee or a collecting bank, the bank is a collecting bank. [1961c.726 §74.1060; 1963 c.402 §2; 1993 c.545 §77]
74.1070Separate office of bank for computing time for actions, notices and orders. A bank orseparate office of a bank is a separate bank for the purpose of computing thetime within which and determining the place at or to which action may be takenor notices or orders must be given under this chapter and ORS chapter 73. [1961c.726 §74.1070; 1993 c.545 §78]
74.1080Time of receipt of items. (1) For the purpose of allowing time to processitems, prove balances and make the necessary entries on its books to determineits position for a day, a bank may fix an afternoon hour of 2 p.m. orlater as a cut-off hour for the handling of money and items and the making ofentries on its books.
(2)An item or deposit of money received on any day after a cut-off hour so fixedor after the close of the banking day may be treated as being received at theopening of the next banking day. [1961 c.726 §74.1080; 1993 c.545 §79]
74.1090Waiver of time limits; when delay excused. (1) Unless otherwise instructed,a collecting bank in a good faith effort to secure payment of a specific itemdrawn on a payor other than a bank, and with or without the approval
