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Can you summarize IACO 554.4202?
UNIFORM COMMERCIAL CODE > Responsibility for collection or return when action timely.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, governs the responsibility of collecting banks in the collection or return of items. It requires collecting banks to exercise ordinary care in presenting items or sending them for presentment, sending notice of dishonor or nonpayment, settling for an item, and notifying their transferor of any loss or delay in transit. The document specifies that a collecting bank must take proper action before its midnight deadline following receipt of an item, notice, or settlement, and may be considered to have exercised ordinary care if proper action is taken within a reasonably longer time. However, the burden of establishing timeliness lies with the bank. The document also states that a bank is not liable for the insolvency, neglect, misconduct, mistake, or default of another bank or person, or for the loss or destruction of an item in the possession of others or in transit. No specific penalties are mentioned in this document.
Whom does it apply to?
Collecting banks
What does it govern?
Collection or return of items by a collecting bank
What are exemptions?
The 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.
What are the Penalties?
No specific penalties mentioned.
Jurisdiction
Iowa