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Can you summarize NJST Chapter 12A:4?
COMMERCIAL TRANSACTIONS >
Short Summary
This legal document governs the responsibilities of collecting banks in commercial transactions. 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 upon receiving final settlement, and notifying their transferor of any loss or delay in transit. The collecting bank must take proper action within its midnight deadline following receipt of an item, notice, or settlement to exercise ordinary care. However, taking proper action within a reasonably longer time may also be considered ordinary care, but the bank has the burden of proving timeliness. 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?
The document applies to collecting banks, payor banks, depositary banks, presenting banks, and their customers.
What does it govern?
The legal document governs the responsibilities of collecting banks in commercial transactions.
What are exemptions?
No specific exemptions are mentioned in this document.
What are the Penalties?
No specific penalties are mentioned in this document.
Jurisdiction
New Jersey