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Can you summarize IACO 554.4103?
UNIFORM COMMERCIAL CODE > Variation by agreement measure of damages action constituting ordinary care.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, governs the variation by agreement, measure of damages, and action constituting ordinary care in commercial transactions involving banks. While the provisions of this Article can be varied by agreement, a bank’s responsibility for lack of good faith or failure to exercise ordinary care cannot be disclaimed or limited in terms of damages. However, the parties may agree on the standards by which the bank’s responsibility is measured, as long as those standards are not manifestly unreasonable. Federal reserve regulations, operating circulars, and clearing-house rules are considered agreements under this Article. Actions or nonactions approved by this Article or pursuant to federal reserve regulations or operating circulars are deemed the exercise of ordinary care. The specification or approval of certain procedures in this Article does not disapprove 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 by the exercise of ordinary care, with additional damages included if bad faith is present.
Whom does it apply to?
Parties to an agreement involving a bank's responsibility and measure of damages
What does it govern?
Variation by agreement, measure of damages, action constituting ordinary care
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Iowa