Ask Reggi Your Question Now
Can you summarize Chapter 1 ?
Bank Deposits and Collections > General Provisions and Definitions
Short Summary
This legal document, part of the Guam Code Annotated, falls under the Uniform Commercial Code and specifically pertains to Bank Deposits and Collections, General Provisions and Definitions. It states that the provisions of this division can be varied by agreement, except for disclaiming a bank’s responsibility for lack of good faith or failure to exercise ordinary care, or limiting the measure of damages for such lack or failure. However, the parties can agree on the standards by which such responsibility is measured if they are not manifestly unreasonable. Federal Reserve regulations, operating letters, and clearing-house rules are considered agreements under this division. Action or nonaction approved by this division or pursuant to Federal Reserve regulations or operating letters is deemed to be the exercise of ordinary care. The document also clarifies that the specification or approval of certain procedures does not disapprove of other reasonable procedures. 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 with ordinary care, and in cases of bad faith, it may include other damages suffered by the affected party as a proximate consequence. This legal document is part of the Guam Code Annotated, specifically the Uniform Commercial Code section on Bank Deposits and Collections. It provides definitions for various terms used in this division. The document defines terms such as account, afternoon, banking day, clearinghouse, customer, documentary draft, item, midnight deadline, properly payable, settle, and suspends payments. It also references other definitions from different sections within this division and other divisions of the Guam Code Annotated. Additionally, it mentions that Division 1 contains general definitions and principles of construction and interpretation applicable throughout this division. In this division, unless the context otherwise requires, the document provides definitions for terms such as depositary bank, payor bank, intermediary bank, collecting bank, presenting bank, and remitting bank. It clarifies that each branch or separate office of a bank is deemed a separate bank for the purpose of these definitions. The document also addresses the computation of time and the handling of money and items after a cutoff hour. It allows collecting banks to waive, modify, or extend time limits in a good faith effort to secure payment, and it excuses delay by a collecting bank or payor bank beyond time limits if caused by certain circumstances beyond the bank’s control. Finally, the document explains the process of posting by a payor bank in determining to pay an item and recording the payment.
Whom does it apply to?
This document applies to banks, including depositary banks, payor banks, intermediary banks, collecting banks, presenting banks, and remitting banks.
What does it govern?
This legal document, part of the Guam Code Annotated, falls under the Uniform Commercial Code and specifically pertains to Bank Deposits and Collections, General Provisions and Definitions.
What are exemptions?
No specific exemptions are mentioned in this document.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
Guam