This Article may be cited as Uniform Commercial Code Bank Deposits and Collections. [C66, 71, 73, 75, 77, 79, 81, 554.4101] 94 Acts, ch 1167, 78, 122

1.To the extent that items within this Article are also within Articles 3 and 8, they are subject to the provisions of those Articles. If there is conflict, this Article governs Article 3, but Article 8 governs this Article. 2.The liability of a bank for action or nonaction with respect to an item handled by it for purposes of presentment, payment, or collection is governed by the law of the place where the bank is located.

This legal document, part of the Iowa Code’s Uniform Commercial Code, governs the variation by agreement, measure of damages, and action constituting ordinary care in commercial transactions involving banks. 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 limited in terms of damages. However, the parties may agree on the standards by which the bank’s responsibility is measured, as long as those standards are not manifestly unreasonable.

This legal document provides definitions for various terms used in the Uniform Commercial Code (UCC) Article 4, which governs the handling, collection, and payment of instruments or orders to pay money. It defines terms such as ‘account,’ ‘banking day,’ ‘customer,’ ‘draft,’ ‘item,’ ‘settle,’ and more. The document also references definitions from other sections and articles of the UCC that apply to Article 4. It applies to banks, customers, drawees, and other parties involved in these transactions.

In this Article: 1.Bank means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company. 2.Depositary bank means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter. 3.Payor bank means a bank that is the drawee of the draft. 4.Intermediary bank means a bank to which an item is transferred in course of collection except the depositary or payor bank.

1.If an item states that it is payable through a bank identified in the item, the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and the item may be presented for payment only by or through the bank. 2.If an item states that it is payable at a bank identified in the item, the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and the item may be presented for payment only by or through the bank.

A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under this Article and under Article 3. [C66, 71, 73, 75, 77, 79, 81, 554.4106] 94 Acts, ch 1167, 83, 120, 122 C95, 554.4107

1.For the purpose of allowing time to process items, prove balances, and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of 2:00 p.m. or later as a cutoff hour for the handling of money and items and the making of entries on its books. 2.An item or deposit of money received on any day after a cutoff hour so fixed or after the close of the banking day may be treated as being received at the opening of the next banking day.

1.Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may waive, modify, or extend time limits imposed or permitted by this chapter for a period not exceeding two additional banking days without discharge of drawers or endorsers or liability to its transferor or a prior party.

1.Agreement for electronic presentment means an agreement, clearing-house rule, or federal reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item (presentment notice) rather than delivery of the item itself. The agreement may provide for procedures governing retention, presentment, payment, dishonor, and other matters concerning items subject to the agreement. 2.Presentment of an item pursuant to an agreement for presentment is made when the presentment notice is received.