47-4202. Responsibility for collection or
return; when action timely


A. A collecting bank must exercise ordinary care in:


1. Presenting an item or sending it for presentment;


2. Sending notice of dishonor or non-payment or returning an item other than a
documentary draft to the bank's transferor after learning that the item has not been paid
or accepted, as the case may be;


3. Settling for an item when the bank receives final settlement; and


4. Notifying its transferor of any loss or delay in transit within a reasonable
time after discovery thereof.


B. A collecting bank exercises ordinary care under subsection A by taking proper
action before its midnight deadline following receipt of an item, notice or
settlement. Taking proper action within a reasonably longer time may constitute the
exercise of ordinary care, but the bank has the burden of establishing timeliness.


C. Subject to paragraph 1 of subsection A, a bank is not liable for the insolvency,
neglect, misconduct, mistake or default of another bank or person or for loss or
destruction of an item in the possession of others or in transit.