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Can you summarize NDCC Chapter 41-04?
Uniform Commercial Code > Bank Deposits and Collections
Short Summary
This legal document, part of the North Dakota Century Code’s Uniform Commercial Code, governs bank deposits and collections. It states that the provisions of this chapter 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. The parties can determine the standards by which the bank’s responsibility is measured, as long as they are not manifestly unreasonable. Federal reserve regulations, operating circulars, and clearinghouse rules are considered agreements under this chapter. Actions or nonactions approved by this chapter or under federal reserve regulations or operating circulars are deemed to be the exercise of ordinary care. The specification or approval of certain procedures in this chapter 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 by the exercise of ordinary care, and may include additional damages if bad faith is involved. This legal document, part of the North Dakota Century Code’s Uniform Commercial Code, specifically focuses on Bank Deposits and Collections. It provides definitions for various terms used in this chapter, such as ‘account’, ‘banking day’, ‘customer’, ‘draft’, ‘item’, and more. The document also includes definitions from other chapters that are applicable to this chapter. It covers the roles and responsibilities of different entities involved in the deposit and collection of funds, including banks, customers, drawees, and other payors. The document clarifies terms related to acceptance, alteration, cashier’s check, certified check, check, holder in due course, instrument, notice of dishonor, order, ordinary care, person entitled to enforce, presentment, promise, prove, teller’s check, and unauthorized signature. Additionally, it mentions that general definitions and principles of construction and interpretation from chapter 41-01 are applicable throughout this chapter. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Banks, customers, drawees, payors, and other entities involved in the deposit and collection of funds
What does it govern?
Bank Deposits and Collections
What are exemptions?
No specific exemptions are mentioned in this document
What are the Penalties?
No specific penalties are mentioned in this document
Jurisdiction
North Dakota