§ 34.1-4-202 — Responsibility for collection or return; when action timely

(a) A collecting bank must exercise ordinary care in:
(i) Presenting an item or sending it for presentment;
(ii) 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;
(iii) Settling for an item when the bank receives
final settlement; and
(iv) Notifying its transferor of any loss or delay in
transit within a reasonable time after discovery thereof.
(b) 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) Subject to subsection (a)(i), 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.