70A-4-103 - Variation by agreement -- Measure of damages -- Certain action constituting ordinary care. - Utah Statutes

70A-4-103. Variation by agreement -- Measure of damages -- Certain actionconstituting ordinary care.
(1) The effect of the provisions of this chapter may be varied by agreement but the partiesto the agreement may not disclaim a bank's responsibility for its lack of good faith or failure toexercise ordinary care, or limit the measure of damages for the lack or failure. However, theparties may determine by agreement the standards by which the bank's responsibility is to bemeasured if those standards are not manifestly unreasonable.
(2) Federal Reserve regulations and operating circulars, clearinghouse rules, and the like,have the effect of agreements under Subsection (1), whether or not specifically assented to by allparties interested in items handled.
(3) Action or nonaction approved by this chapter or pursuant to Federal Reserveregulations or operating circulars is the exercise of ordinary care and, in the absence of specialinstructions, action or nonaction consistent with clearinghouse rules and the like or with a generalbanking usage not disapproved by this chapter, is prima facie exercise of ordinary care.
(4) The specification or approval of certain procedures by this chapter is not disapprovalof other procedures that may be reasonable under the circumstances.
(5) The measure of damages for failure to exercise ordinary care in handling an item isthe amount of the item reduced by an amount that could not have been realized by the exercise ofordinary care. If there is bad faith, it includes any other damages the party suffered as aproximate consequence.

Amended by Chapter 237, 1993 General Session