400.4-202. Responsibility for collection or return--when action timely. - Missouri Statutes

Responsibility for collection or return--when action timely.

400.4-202. (a) A collecting bank must exercise ordinarycare in:

(1) presenting an item or sending it for presentment;

(2) sending notice of dishonor or nonpayment or returning anitem other than a documentary draft to the bank's transferorafter learning that the item has not been paid or accepted, asthe case may be;

(3) settling for an item when the bank receives finalsettlement; and

(4) notifying its transferor of any loss or delay intransit within a reasonable time after discovery thereof.

(b) A collecting bank exercises ordinary care undersubsection (a) by taking proper action before its midnightdeadline following receipt of an item, notice, or settlement.Taking proper action within a reasonably longer time mayconstitute the exercise of ordinary care, but the bank has theburden of establishing timeliness.

(c) Subject to subsection (a)(1), a bank is not liable forthe insolvency, neglect, misconduct, mistake, or default ofanother bank or person or for loss or destruction of an item inthe possession of others or in transit.

(L. 1963 p. 503 § 4-202, A.L. 1992 S.B. 448)