70A-4-202 - Responsibility for collection or return -- When action timely. - Utah Statutes

70A-4-202. Responsibility for collection or return -- When action timely.
(1) A collecting bank must exercise ordinary care in:
(a) presenting an item or sending it for presentment;
(b) sending notice of dishonor or nonpayment or returning an item other than adocumentary draft to the bank's transferor after learning that the item has not been paid oraccepted, as the case may be;
(c) settling for an item when the bank receives final settlement; and
(d) notifying its transferor of any loss or delay in transit within a reasonable time afterdiscovery thereof.
(2) A collecting bank exercises ordinary care under Subsection (1) by taking properaction before its midnight deadline following receipt of an item, notice, or settlement. Takingproper action within a reasonably longer time may constitute the exercise of ordinary care, but thebank has the burden of establishing timelines.
(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 inthe possession of others or in transit.

Amended by Chapter 237, 1993 General Session