2009 Iowa Code
Title 13 - Commerce
Subtitle 5 - Regulation of Commercial Enterprises
CHAPTER 554 - UNIFORM COMMERCIAL CODE
554.4103 - VARIATION BY AGREEMENT -- MEASURE OF DAMAGES -- ACTION CONSTITUTING ORDINARY CARE.

        554.4103  VARIATION BY AGREEMENT -- MEASURE OF DAMAGES
      -- ACTION CONSTITUTING ORDINARY CARE.
         1.  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.
         2.  Federal reserve regulations and operating circulars,
      clearing-house rules, and the like have the effect of agreements
      under subsection 1, whether or not specifically assented to by all
      parties interested in items handled.
         3.  Action or nonaction approved by this Article or pursuant to
      federal reserve regulations or operating circulars is the exercise of
      ordinary care and, in the absence of special instructions, action or
      nonaction consistent with clearing-house rules and the like or with a
      general banking usage not disapproved by this Article, is prima facie
      the exercise of ordinary care.
         4.  The specification or approval of certain procedures by this
      Article is not disapproval of other procedures that may be reasonable
      under the circumstances.
         5.  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.  

         Section History: Early Form

         [C66, 71, 73, 75, 77, 79, 81, § 554.4103] 

         Section History: Recent Form

         94 Acts, ch 1167, §80, 122