(1) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may waive, modify or extend time limits imposed or permitted by the Uniform Commercial Code for a period not exceeding two additional banking days without discharge of drawers or indorsers or liability to its transferor or a prior party.
(2) Delay by a collecting bank or payor bank beyond time limits prescribed or permitted by the Uniform Commercial Code or by instructions is excused if:
(a) The delay is caused by interruption of communication or computer facilities, suspension of payments by another bank, war, emergency conditions, failure of equipment or other circumstances beyond the control of the bank; and
(b) The bank exercises such diligence as the circumstances require. [1993 c.545 §81]Section: Previous 74.1020 74.1030 74.1040 74.1050 74.1060 74.1070 74.1080 74.1090 74.1110 74.1120 74.2010 74.2020 74.2030 74.2040 74.2050 Next
Last modified: August 7, 2008