Pennsylvania § 4202 Responsibility for collection or return; when action timely

Pennsylvania Statutes

§ 4202 — Responsibility for collection or return; when action timely

Pennsylvania § 4202

Title 13COMMERCIAL CODE

Ch. 42COLLECTION OF ITEMS: DEPOSITARY

This text of Pennsylvania § 4202 (Responsibility for collection or return; when action timely) is published on Counsel Stack Legal Research, covering Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

13 Pa. Cons. Stat. § 4202 (2026).

Text

(a)When collecting bank must exercise ordinary care.--A collecting bank must exercise ordinary care in:

(1)presenting an item or sending it for presentment;

(2)sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the transferor of the bank after learning that the item has not been paid or accepted, as the case may be;

(3)settling for an item when the bank receives final settlement; and

(4)notifying its transferor of any loss or delay in transit within a reasonable time after discovery thereof.

(b)Exercise of ordinary care.--A collecting bank exercises ordinary care under subsection (a) by taking proper action before its midnight deadline following receipt of an item, notice or settlement. Taking proper action within a reasonably longer

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(a) When collecting bank must exercise ordinary care.--A collecting bank must exercise ordinary care in:

(1) presenting an item or sending it for presentment;

(2) sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the transferor of the bank after learning that the item has not been paid or accepted, as the case may be;

(3) settling for an item when the bank receives final settlement; and

(4) notifying its transferor of any loss or delay in transit within a reasonable time after discovery thereof.

(b) Exercise of ordinary care.--A collecting bank exercises ordinary care under subsection (a) by taking proper action before its midnight deadline following receipt of an item, notice or settlement. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness.

(c) Nonliability of bank for action of others.--Subject to subsection (a)(1), 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.