NY UCC

PART 1
GENERAL PROVISIONS AND DEFINITIONS

Section 4--101. Short Title.
  This Article shall be known and may be cited as Uniform Commercial
Code--Bank Deposits and Collections.

Section 4--102. Applicability.
  (1) To the extent that items within this Article are also within the
scope of Articles 3 and 8, they are subject to the provisions of those
Articles. In the event of conflict the provisions of this Article govern
those of Article 3 but the provisions of Article 8 govern those of this
Article.
  (2) The liability of a bank for action or non-action with respect to
any item handled by it for purposes of presentment, payment or
collection is governed by the law of the place where the bank is
located. In the case of action or non-action by or at a branch or
separate office of a bank, its liability is governed by the law of the
place where the branch or separate office is located.

Section 4--103. Variation by Agreement; Measure of Damages; Certain
                  Action Constituting Ordinary Care.
  (1) The effect of the provisions of this Article may be varied by
agreement except that no agreement can disclaim a bank`s responsibility
for its own lack of good faith or failure to exercise ordinary care or
can limit the measure of damages for such lack or failure; but the
parties may by agreement determine the standards by which such
responsibility is to be measured if such standards are not manifestly
unreasonable.
  (2) Federal Reserve regulations and operating letters, clearing house
rules, and the like, have the effect of agreements under subsection (1),
whether or not specifically assented to by all parties interested in
items handled.
  (3) Action or non-action approved by this Article or pursuant to
Federal Reserve regulations or operating letters constitutes the
exercise of ordinary care and, in the absence of special instructions,
action or non-action consistent with clearing house rules and the like
or with a general banking usage not disapproved by this Article, prima
facie constitutes the exercise of ordinary care.
  (4) The specification or approval of certain procedures by this
Article does not constitute disapproval of other procedures which may be
reasonable under the circumstances.
  (5) The measure of damages for failure to exercise ordinary care in
handling an item is the amount of the item reduced by an amount which
could not have been realized by the use of ordinary care, and where
there is bad faith it includes other damages, if any, suffered by the
party as a proximate consequence.

S 4--104. Definitions and Index of Definitions.
  (1) In this Article unless the context otherwise requires
       (a) "Account" means any account with a bank and includes a
           checking, time, interest or savings account;
       (b) "Afternoon" means the period of a day between noon and
           midnight;
       (c) "Banking day" means that part of any day on which a bank is
           open to the public for carrying on substantially all of its
           banking functions;
       (d) "Clearing house" means any association of banks or other
           payors regularly clearing items;
       (e) "Customer" means any person having an account with a bank or
           for whom a bank has agreed to collect items and includes a
           bank carrying an account with another bank;
       (f) "Documentary draft" means any negotiable or non-negotiable
           draft with accompanying documents, securities or other papers
           to be delivered against honor of the draft;
       (g) "Item" means any instrument for the payment of money even
           though it is not negotiable but does not include money;
       (h) "Midnight deadline" with respect to a bank is midnight on its
           next banking day following the banking day on which it
           receives the relevant item or notice or from which the time
           for taking action commences to run, whichever is later;
       (i) "Obligated bank" means the acceptor of a certified check, the
           issuer of a cashier`s check, or the drawer of a teller`s
           check;
       (j) "Properly payable" includes the availability of funds for
           payment at the time of decision to pay or dishonor;
       (k) "Remitter" means the buyer from the obligated bank of a
           cashier`s check or a teller`s check, and the drawer of a
           certified check;
       (l) "Settle" means to pay in cash, by clearing house settlement,
           in a charge or credit or by remittance, or otherwise as
           instructed. A settlement may be either provisional or final;
       (m) "Suspends payments" with respect to a bank means that it has
           been closed by order of the supervisory authorities, that a
           public officer has been appointed to take it over or that it
           ceases or refuses to make payments in the ordinary course of
           business.
  (2) Other definitions applying to this Article and the sections in
which they appear are:
     "Collecting bank"             Section 4--105.
     "Depositary bank"             Section 4--105.
     "Intermediary bank"           Section 4--105.
     "Payor bank"                  Section 4--105.
     "Presenting bank"             Section 4--105.
     "Remitting bank"              Section 4--105.
  (3) The following definitions in other Articles apply to this Article:
     "Acceptance"                  Section 3--410.
     "Certificate of deposit"      Section 3--104.
     "Certification"               Section 3--411.
     "Check"                       Section 3--104.
     "Draft"                       Section 3--104.
     "Holder in due course"        Section 3--302.
     "Notice of dishonor"          Section 3--508.
     "Presentment"                 Section 3--504.
     "Protest"                     Section 3--509.
     "Secondary party"             Section 3--102.
  (4) In addition Article 1 contains general definitions and principles
of construction and interpretation applicable throughout this Article.

Section 4--105. "Depositary Bank"; "Intermediary Bank"; "Collecting
                  Bank"; "Payor Bank"; "Presenting Bank"; "Remitting
                  Bank".
  In this Article unless the context otherwise requires:
  (a) "Depositary bank" means the first bank to which an item is
transferred for collection even though it is also the payor bank;
  (b) "Payor bank" means a bank by which an item is payable as drawn or
accepted;
  (c) "Intermediary bank" means any bank to which an item is transferred
in course of collection except the depositary or payor bank;
  (d) "Collecting bank" means any bank handling the item for collection
except the payor bank;
  (e) "Presenting bank" means any bank presenting an item except a payor
bank;
  (f) "Remitting bank" means any payor or intermediary bank remitting
for an item.

Section 4--106. Separate Office of a Bank.
  A branch or separate office of a bank is a separate bank for the
purpose of computing the time within which and determining the place at
or to which action may be taken or notices or orders shall be given
under this Article and under Article 3. The receipt of any notice or
order by or the knowledge of one branch or separate office of a bank is
not actual or constructive notice to or knowledge of any other branch or
office of the same bank and does not impair the right of another branch
or office to be a holder in due course of an item.

Section 4--107. Time of Receipt of Items.
  (1) For the purpose of allowing time to process items, prove balances
and make the necessary entries on its books to determine its position
for the day, a bank may fix an afternoon hour of two P.M. or later as a
cut-off hour for the handling of money and items and the making of
entries on its books.
  (2) Any item or deposit of money received on any day after a cut-off
hour so fixed or after the close of the banking day may be treated as
being received at the opening of the next banking day.

Section 4--108. Delays.
  (1) Unless otherwise instructed, a collecting bank in a good faith
effort to secure payment may, in the case of specific items and with or
without the approval of any person involved, waive, modify or extend
time limits imposed or permitted by this Act for a period not in excess
of an additional banking day without discharge of secondary parties and
without liability to its transferor or any prior party.
  (2) Delay by a collecting bank or payor bank beyond time limits
prescribed or permitted by this Act or by instructions is excused if
caused by interruption of communication facilities, suspension of
payments by another bank, war, emergency conditions or other
circumstances beyond the control of the bank provided it exercises such
diligence as the circumstances require.

Section 4--109. Process of Posting.
  The "process of posting" means the usual procedure followed by a payor
bank in determining to pay an item and in recording the payment
including one or more of the following or other steps as determined by
the bank:
  (a) verification of any signature;
  (b) ascertaining that sufficient funds are available;
  (c) affixing a "paid" or other stamp;
  (d) entering a charge or entry to a customer`s account;
  (e) correcting or reversing an entry or erroneous action with respect
to the item.