2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 42 - Collection of Items: Depositary and Collecting Banks
Section 4202 - Responsibility for collection or return; when action timely

     § 4202.  Responsibility for collection or return; when action
                timely.
        (a)  When collecting bank must exercise ordinary care.--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
        transferor of the bank 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)  Exercise of ordinary care.--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)  Nonliability of bank for action of others.--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.
     (July 9, 1992, P.L.507, No.97, eff. one year)