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Can you summarize MNST 336.4-202?
UNIFORM COMMERCIAL CODE > RESPONSIBILITY FOR COLLECTION OR RETURN; WHEN ACTION TIMELY.
Short Summary
This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, governs the responsibility of collecting banks in the collection and return of items. A collecting bank is required to exercise ordinary care in presenting an item or sending it for presentment, sending notice of dishonor or nonpayment, settling for an item, and notifying its transferor of any loss or delay in transit. The bank must take proper action within its midnight deadline following receipt of an item, notice, or settlement to exercise ordinary care. The bank may be exempt from liability for the insolvency, neglect, misconduct, mistake, or default of another bank or person, as well as for 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 and 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
Minnesota