South Carolina § 36-4-103 Variation by agreement; measure of damages; action constituting ordinary care.

South Carolina Statutes

§ 36-4-103 — Variation by agreement; measure of damages; action constituting ordinary care.

South Carolina·Title 36 COMMERCIAL CODE·Ch. 4 COMMERCIAL CODE—BANK DEPOSITS AND COLLECTIONS

(a)The effect of the provisions of this chapter may be varied by agreement, but the parties to the agreement cannot disclaim a bank's responsibility for its lack of good faith or failure to exercise ordinary care or limit the measure of damages for the lack or failure. However, the parties may determine by agreement the standards by which the bank's responsibility is to be measured if those standards are not manifestly unreasonable.

(b)Federal Reserve regulations and operating circulars, clearing-house rules, and the like have the effect of agreements under Subsection (a), whether or not specifically assented to by all parties interested in items handled.

(c)Action or non-action approved by this chapter or pursuant to Federal Reserve regulations or operating circulars is the exercise of

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(a) The effect of the provisions of this chapter may be varied by agreement, but the parties to the agreement cannot disclaim a bank's responsibility for its lack of good faith or failure to exercise ordinary care or limit the measure of damages for the lack or failure. However, the parties may determine by agreement the standards by which the bank's responsibility is to be measured if those standards are not manifestly unreasonable. (b) Federal Reserve regulations and operating circulars, clearing-house rules, and the like have the effect of agreements under Subsection (a), whether or not specifically assented to by all parties interested in items handled. (c) Action or non-action approved by this chapter or pursuant to Federal Reserve regulations or operating circulars is 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 chapter, is prima facie the exercise of ordinary care. (d) The specification or approval of certain procedures by this chapter is not disapproval of other procedures that may be reasonable under the circumstances. (e) The measure of damages for failure to exercise ordinary care in handling an item is the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care. If there is also bad faith it includes any other damages the party suffered as a proximate consequence.

South Carolina § 36-4-103 (Variation by agreement; measure of damages; action constituting ordinary care.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.