N.Y. Uniform Commercial Code 4-202 – Responsibility for Collection; When Action Seasonable
Section 4–202. Responsibility for Collection; When Action Seasonable.
Terms Used In N.Y. Uniform Commercial Code 4-202
- Depositary bank: means the first bank to which an item is transferred for collection even though it is also the payor bank;
(b) "Payor bank" means a bank by which an item is payable as drawn or accepted;
(c) "Intermediary bank" means any bank to which an item is transferred in course of collection except the depositary or payor bank;
(d) "Collecting bank" means any bank handling the item for collection except the payor bank;
(e) "Presenting bank" means any bank presenting an item except a payor bank;
(f) "Remitting bank" means any payor or intermediary bank remitting for an item. See N.Y. Uniform Commercial Code 4-105 - Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(1) A collecting bank must use ordinary care in
(a) presenting an item or sending it for presentment; and
(b) sending notice of dishonor or non-payment or returning an
item other than a documentary draft to the bank's transferor
or directly to the depositary bank under subsection (2) of
Section 4–212 after learning that the item has not been paid
or accepted, as the case may be; and
(c) settling for an item when the bank receives final settlement;
and
(d) making or providing for any necessary protest; and
(e) notifying its transferor of any loss or delay in transit
within a reasonable time after discovery thereof.
(2) A collecting bank taking proper action before its midnight deadline following receipt of an item, notice or payment acts seasonably; taking proper action within a reasonably longer time may be seasonable but the bank has the burden of so establishing.
(3) Subject to subsection (1) (a), 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 transit or in the possession of others.