2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 41 - General Provisions and Definitions
Section 4103 - Variation by agreement; measure of damages; action constituting ordinary care

     § 4103.  Variation by agreement; measure of damages; action
                constituting ordinary care.
        (a)  Variation by agreement.--The effect of the provisions of
     this division may be varied by agreement, but the parties to the
     agreement cannot disclaim the responsibility of a bank 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
     responsibility of the bank is to be measured if those standards
     are not manifestly unreasonable.
        (b)  Rules and regulations having effect of agreements.--
     Federal Reserve regulations and operating circulars,
     clearinghouse rules and the like have the effect of agreements
     under subsection (a), whether or not specifically assented to by
     all parties interested in items handled.
        (c)  Certain action constituting ordinary care.--Action or
     nonaction approved by this division 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 clearinghouse rules and the
     like or with a general banking usage not disapproved by this
     division, is prima facie the exercise of ordinary care.
        (d)  Effect of approval of certain procedures by this
     division.--The specification or approval of certain procedures
     by this division is not disapproval of other procedures that may
     be reasonable under the circumstances.
        (e)  Measure of damages for failure to exercise ordinary
     care.--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.
     (July 9, 1992, P.L.507, No.97, eff. one year)