§ 26-1-4-109 — Delays

(a) 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 IC 26-1 for a period not exceeding two (2) additional
banking days without discharge of drawers or endorsers or liability to
its transferor or a prior party.
(b) Delay by a collecting bank or payor bank beyond time limits
prescribed or permitted by IC 26-1 or by instructions is excused if:
(1) 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
(2) the bank exercises such diligence as the circumstances
require.
Formerly: Acts 1963, c.317, s.4-109. As amended by
P.L.222-1993, SEC.14.