Minnesota Legislature
Office of the Revisor of Statutes
2006 Minnesota Statutes
This is an historical version of this statute chapter. Also view the most recent published version.
336.4-202 RESPONSIBILITY FOR COLLECTION OR RETURN; WHEN ACTION
TIMELY.
(a) A collecting bank must exercise ordinary care in:
(1) presenting an item or sending it for presentment;
(2) sending notice of dishonor or nonpayment or returning an item other than a documentary
draft to the bank's transferor after learning that the item has not been paid or accepted, as the
case may be;
(3) settling for an item when the bank receives final settlement; and
(4) notifying its transferor of any loss or delay in transit within a reasonable time after
discovery thereof.
(b) A collecting bank exercises ordinary care under subsection (a) by taking proper action
before its midnight deadline following receipt of an item, notice, or settlement. Taking proper
action within a reasonably longer time may constitute the exercise of ordinary care, but the
bank has the burden of establishing timeliness.
(c) Subject to subsection (a)(1), a bank is not liable for the insolvency, neglect, misconduct,
mistake, or default of another bank or person or for loss or destruction of an item in the possession
of others or in transit.
History: 1965 c 811 s 336.4-202; 1992 c 565 s 84
TIMELY.
(a) A collecting bank must exercise ordinary care in:
(1) presenting an item or sending it for presentment;
(2) sending notice of dishonor or nonpayment or returning an item other than a documentary
draft to the bank's transferor after learning that the item has not been paid or accepted, as the
case may be;
(3) settling for an item when the bank receives final settlement; and
(4) notifying its transferor of any loss or delay in transit within a reasonable time after
discovery thereof.
(b) A collecting bank exercises ordinary care under subsection (a) by taking proper action
before its midnight deadline following receipt of an item, notice, or settlement. Taking proper
action within a reasonably longer time may constitute the exercise of ordinary care, but the
bank has the burden of establishing timeliness.
(c) Subject to subsection (a)(1), a bank is not liable for the insolvency, neglect, misconduct,
mistake, or default of another bank or person or for loss or destruction of an item in the possession
of others or in transit.
History: 1965 c 811 s 336.4-202; 1992 c 565 s 84
Official Publication of the State of Minnesota
Revisor of Statutes