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Can you summarize NHRS 382-A:4-103?
UNIFORM COMMERCIAL CODE > Variation by Agreement; Measure of Damages; Action Constituting Ordinary Care.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code (Chapter 382-A), governs the variation by agreement, measure of damages, and action constituting ordinary care in commercial transactions involving banks. The document states that 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 the measure of damages limited. However, the parties may agree on the standards by which the bank’s responsibility is to be measured if those standards are not manifestly unreasonable. The document also mentions that Federal Reserve regulations, operating circulars, and clearing-house rules have the effect of agreements. It further clarifies that action or non-action approved by this Article or pursuant to Federal Reserve regulations or operating circulars is considered the exercise of ordinary care. The document emphasizes that the specification or approval of certain procedures does not disapprove other reasonable procedures. In case of failure to exercise ordinary care, the measure of damages is the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care, and additional damages may be included if bad faith is present. Overall, this document provides guidelines and standards for parties involved in commercial transactions with banks.
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?
None mentioned
What are the Penalties?
None mentioned
Jurisdiction
New Hampshire