2005 Connecticut Code - Sec. 42a-4-202. Responsibility for collection or return. When action timely.
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.
(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, 502. Cited. 232 C. 167, 171.
Disclaimer: These codes may not be the most recent version. Connecticut may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.