Arizona Revised Statutes § 47-4202 Responsibility For Collection Or Return; When Action Timely

47-4202. Responsibility for collection or return; when action timely

A. A collecting bank must exercise ordinary care in:

1. Presenting an item or sending it for presentment;

2. Sending notice of dishonor or non-payment or returning an item other than a documentary draft to the bank's transferor after learning that the item has not been paid or accepted, as the case may be;

3. Settling for an item when the bank receives final settlement; and

4. Notifying its transferor of any loss or delay in transit within a reasonable time after discovery thereof.

B. A collecting bank exercises ordinary care under subsection A by taking proper action before its midnight deadline following receipt of an item, notice or settlement. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness.

C. Subject to paragraph 1 of subsection 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 in the possession of others or in transit.

Section: Previous  47-4106  47-4107  47-4108  47-4109  47-4110  47-4111  47-4201  47-4202  47-4203  47-4204  47-4205  47-4206  47-4207  47-4208  47-4209  Next

Last modified: October 13, 2016