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Can you summarize 13 PACS Division 4?
COMMERCIAL CODE > BANK DEPOSITS AND COLLECTIONS
Short Summary
This legal document, known as the Uniform Commercial Code, Article 4, Bank Deposits and Collections, governs the handling of commercial paper and investment securities within the context of the Pennsylvania Commercial Code. It states that items within this division are subject to the provisions of Division 3 (relating to negotiable instruments) and Division 8 (relating to investment securities) if they fall within those divisions as well. The liability of a bank for action or nonaction with respect to an item handled by it for purposes of presentment, payment, or collection is governed by the law of the place where the bank or its branch/separate office is located. The document allows for the variation of provisions by agreement, but the responsibility of a bank for lack of good faith or failure to exercise ordinary care cannot be disclaimed. The measure of damages for failure to exercise ordinary care is determined as the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care. Certain actions or nonactions approved by this division or pursuant to Federal Reserve regulations or operating circulars are considered the exercise of ordinary care. The document also provides definitions for various terms used in the Pennsylvania Compiled Statutes related to the Commercial Code, specifically Bank Deposits and Collections, General Provisions and Definitions. It clarifies the definitions of terms such as ‘bank,’ ‘collecting bank,’ ‘depositary bank,’ ‘intermediary bank,’ ‘payor bank,’ and ‘presenting bank.’ The document also includes provisions regarding the cutoff hour for handling and book entries, as well as the concept of electronic presentment. Overall, this document serves as a reference for understanding the meanings of various terms used in the relevant statutes and provides guidelines for banking operations and transactions in Pennsylvania.
Whom does it apply to?
The document applies to banks, depositary banks, collecting banks, payor banks, and customers involved in the handling, presentment, payment, collection, or return of items.
What does it govern?
The legal document governs the handling of commercial paper and investment securities within the context of the Pennsylvania Commercial Code. It specifically covers bank deposits and collections.
What are exemptions?
No specific exemptions are mentioned in the document.
What are the Penalties?
No specific penalties are mentioned in the document.
Jurisdiction
Pennsylvania