§ 25-4-108. Delays. - North Carolina Statutes

§25‑4‑108.  Delays.

(a)        Unless otherwiseinstructed, a collecting bank in a good faith effort to secure payment of aspecific item drawn on a payor other than a bank, and with or without theapproval of any person involved, may waive, modify, or extend time limitsimposed or permitted by this Chapter for a period not exceeding two additionalbanking days without discharge of drawers or indorsers or liability to itstransferor or a prior party.

(b)        Delay by acollecting bank or payor bank beyond time limits prescribed or permitted bythis Chapter or by instructions is excused if (i) the delay is caused byinterruption of communication or computer facilities, suspension of payments byanother bank, war, emergency conditions, failure of equipment, or other circumstancesbeyond the control of the bank, and (ii) the bank exercises such diligence asthe circumstances require. (1965, c. 700, s. 1; 1995, c. 232, s. 2.)