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Can you summarize MNST 336.4-103?
UNIFORM COMMERCIAL CODE > VARIATION BY AGREEMENT; MEASURE OF DAMAGES; ACTION CONSTITUTING ORDINARY CARE.
Short Summary
This legal document pertains to the variation by agreement, measure of damages, and action constituting ordinary care in trade regulations and consumer protection under the Uniform Commercial Code in Minnesota. It states that while the effect of the provisions in 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 the measure of damages limited. However, the parties can agree on standards to measure the bank’s responsibility if those standards are not manifestly unreasonable. Federal reserve regulations, operating circulars, and clearinghouse rules are considered agreements under this article. Action or nonaction approved by this article or pursuant to federal reserve regulations or operating circulars is considered 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. If there is also bad faith, it includes any other damages suffered as a proximate consequence.
Whom does it apply to?
Parties involved in agreements related to banking responsibilities, including banks and their customers.
What does it govern?
Uniform Commercial Code provisions related to the variation by agreement, measure of damages, and action constituting ordinary care in trade regulations and consumer protection in Minnesota.
What are exemptions?
No specific exemptions are mentioned in the provided content.
What are the Penalties?
No specific penalties are mentioned in the provided content.
Jurisdiction
Minnesota