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Can you summarize WIST Chapter 404?
Uniform Commercial Code. > Uniform commercial code bank deposits and collections.
Short Summary
The provided legal document pertains to the Uniform Commercial Code (UCC) in Wisconsin, specifically focusing on bank deposits and collections. It states that the provisions of this chapter can be varied by agreement, but a bank’s responsibility for lack of good faith or failure to exercise ordinary care cannot be disclaimed or limited in terms of damages. However, the parties can agree on the standards by which the bank’s responsibility is measured, as long as those standards 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 pursuant to federal reserve regulations or operating circulars are deemed 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, with additional damages included if bad faith is present. This section of the Wisconsin Statutes governs the Uniform Commercial Code - Bank Deposits and Collections. It provides definitions for various terms used in this chapter, including ‘account’, ‘afternoon’, ‘banking day’, ‘clearinghouse’, ‘customer’, ‘documentary draft’, ‘draft’, ‘drawee’, ‘item’, ‘midnight deadline’, ‘settle’, and ‘suspends payments’. The section also refers to definitions from other chapters that apply to this chapter. It does not mention any specific penalties. The section primarily applies to banks, customers, drawees, and other payers involved in the deposit and collection of items, excluding payment orders governed by ch. 410 or credit/debit card slips.
Whom does it apply to?
Banks, customers, drawees, and other payers involved in the deposit and collection of items
What does it govern?
Bank deposits and collections
What are exemptions?
Payment orders governed by ch. 410 or credit/debit card slips
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Wisconsin