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Can you summarize NVRS 104.4103?
Uniform Commercial CodeOriginal Articles > Variation by agreement; measure of damages; action constituting ordinary care.
Short Summary
This legal document pertains to the variation of provisions by agreement, the measure of damages, and the action constituting ordinary care in commercial transactions involving banks. While the provisions of this article can be varied by agreement, a bank cannot disclaim responsibility for its own lack of good faith or failure to exercise ordinary care, nor can the measure of damages for such lack or failure be limited. However, the parties may agree on the standards by which the bank’s responsibility is to be measured, as long as 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 deemed the exercise of ordinary care. The specification or approval of certain procedures in this article 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 additional damages may be included if bad faith is present.
Whom does it apply to?
Parties to agreements involving banks and commercial transactions.
What does it govern?
Variation by agreement; measure of damages; action constituting ordinary care.
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Nevada