§ 6A-4-103 - Variation by agreement – Measure of damages – Action constituting ordinary care. - Rhode Island Statutes

SECTION 6A-4-103

   § 6A-4-103  Variation by agreement –Measure of damages – Action constituting ordinary care. – (a) The effect of the provisions of this chapter may be varied by agreement,but the parties to the agreement cannot disclaim a bank's responsibility forits lack of good faith or failure to exercise ordinary care or limit themeasure of damages for the lack or failure. However, the parties may determineby agreement the standards by which the bank's responsibility is to be measuredif those standards are not manifestly unreasonable.

   (b) Federal Reserve regulations and operating circulars,clearing-house rules, and the like have the effect of agreements undersubsection (a), whether or not specifically assented to by all partiesinterested in items handled.

   (c) Action or non-action approved by this chapter or pursuantto Federal Reserve regulations or operating circulars is the exercise ofordinary care and, in the absence of special instructions, action or non-actionconsistent with clearing-house rules and the like or with a general bankingusage not disapproved by this chapter, is prima facie the exercise of ordinarycare.

   (d) The specification or approval of certain procedures bythis chapter is not disapproval of other procedures that may be reasonableunder the circumstances.

   (e) The measure of damages for failure to exercise ordinarycare in handling an item is the amount of the item reduced by an amount thatcould not have been realized by the exercise of ordinary care. If there is alsobad faith it includes any other damages the party suffered as a proximateconsequence.