§ 554.4109 — Delays

Iowa § 554.4109

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

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 this
chapter for a period not exceeding two additional banking days without discharge of drawers
or endorsers 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 this chapter or by instructions is excused if 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 the bank exercises such diligence as the circumstances require.

Legislative History

[C66, 71, 73, 75, 77, 79, 81, §554.4108]