Sec. 42a-4-202. Responsibility for collection or return. When action timely. - Connecticut Statutes

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Statutes > Connecticut > Title42a > Art004 > Sec42a-4-202

      Sec. 42a-4-202. 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 nonpayment 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 subsection (a)(1), 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.

      (1959, P.A. 133, S. 4-202; P.A. 91-304, S. 80.)

      History: P.A. 91-304 replaced numeric with alphabetic Subsec. indicators and alphabetic with numeric Subdiv. indicators, amended Subsec. (a) to delete provision from Subdiv. (2) re sending notice of dishonor or nonpayment or returning an item "directly to the depositary bank under subsection (2) of section 42a-4-212" and delete provision requiring exercise of ordinary care in "making or providing for any necessary protest", amended Subsec. (b) to restate provisions and replace "acts seasonably" with "exercises ordinary care" and replace "may be seasonable" with "may constitute the exercise of ordinary care" and amended Subsec. (c) to make technical changes and reposition "in the possession of others".

      Cited. 32 CS 179.

      Subsec. (b):

      Cited. 230 C. 486. Cited. 232 C. 167.

State Codes and Statutes

Statutes > Connecticut > Title42a > Art004 > Sec42a-4-202

      Sec. 42a-4-202. 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 nonpayment 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 subsection (a)(1), 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.

      (1959, P.A. 133, S. 4-202; P.A. 91-304, S. 80.)

      History: P.A. 91-304 replaced numeric with alphabetic Subsec. indicators and alphabetic with numeric Subdiv. indicators, amended Subsec. (a) to delete provision from Subdiv. (2) re sending notice of dishonor or nonpayment or returning an item "directly to the depositary bank under subsection (2) of section 42a-4-212" and delete provision requiring exercise of ordinary care in "making or providing for any necessary protest", amended Subsec. (b) to restate provisions and replace "acts seasonably" with "exercises ordinary care" and replace "may be seasonable" with "may constitute the exercise of ordinary care" and amended Subsec. (c) to make technical changes and reposition "in the possession of others".

      Cited. 32 CS 179.

      Subsec. (b):

      Cited. 230 C. 486. Cited. 232 C. 167.

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State Codes and Statutes

Statutes > Connecticut > Title42a > Art004 > Sec42a-4-202

      Sec. 42a-4-202. 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 nonpayment 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 subsection (a)(1), 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.

      (1959, P.A. 133, S. 4-202; P.A. 91-304, S. 80.)

      History: P.A. 91-304 replaced numeric with alphabetic Subsec. indicators and alphabetic with numeric Subdiv. indicators, amended Subsec. (a) to delete provision from Subdiv. (2) re sending notice of dishonor or nonpayment or returning an item "directly to the depositary bank under subsection (2) of section 42a-4-212" and delete provision requiring exercise of ordinary care in "making or providing for any necessary protest", amended Subsec. (b) to restate provisions and replace "acts seasonably" with "exercises ordinary care" and replace "may be seasonable" with "may constitute the exercise of ordinary care" and amended Subsec. (c) to make technical changes and reposition "in the possession of others".

      Cited. 32 CS 179.

      Subsec. (b):

      Cited. 230 C. 486. Cited. 232 C. 167.