Iowa § 554.4202 Responsibility for collection or return — when action timely

Iowa Statutes

§ 554.4202 — Responsibility for collection or return — when action timely

Iowa § 554.4202

Title XIIICOMMERCE

Ch. 554UNIFORM COMMERCIAL CODE

This text of Iowa § 554.4202 (Responsibility for collection or return — when action timely) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 554.4202 (2026).

Text

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 a documentary draft to the bank’s transferor after learning that the item has not been paid or accepted, 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 after discovery thereof.

2.A collecting bank exercises ordinary care under subsection 1 by taking proper action beforeitsmidnightdeadlinefollowingreceiptofanitem, notice, orsettlement. Takingproper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness

Free access — add to your briefcase to read the full text and ask questions with AI

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 a
documentary draft to the bank’s transferor after learning that the item has not been paid or
accepted, 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 after
discovery thereof.
2. A collecting bank exercises ordinary care under subsection 1 by taking proper action
beforeitsmidnightdeadlinefollowingreceiptofanitem, notice, orsettlement. Takingproper
action within a reasonably longer time may constitute the exercise of ordinary care, but the
bank has the burden of establishing timeliness.
3. Subject to subsection 1, paragraph “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.