(a) Presenting an item or sending it for presentment;
(b) 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;
(c) Settling for an item when the bank receives final settlement; and
(d) Notifying its transferor of any loss or delay in transit within a reasonable time after discovery thereof.
(2) A collecting bank exercises ordinary care under subsection (1) of this section 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.
(3) Subject to subsection (1)(a) of this section, 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. [1961 c.726 §74.2020; 1993 c.545 §85]
Structure 2021 Oregon Revised Statutes
Volume : 02 - Business Organizations, Commercial Code
Chapter 074 - Bank Deposits and Collections
Section 74.1020 - Applicability.
Section 74.1030 - Variation by agreement; measure of damages; action constituting ordinary care.
Section 74.1040 - Definitions and index of definitions.
Section 74.1060 - Payable through or payable at bank; collecting bank.
Section 74.1080 - Time of receipt of items.
Section 74.1090 - Waiver of time limits; when delay excused.
Section 74.1120 - Electronic presentment.
Section 74.2020 - Responsibility for collection; when action timely.
Section 74.2040 - Methods of sending and presenting; presentment.
Section 74.2050 - Depositary bank as holder of unindorsed item.
Section 74.2090 - Encoding and retention warranties; remedies.
Section 74.2100 - Security interest of collecting bank in items; priority.
Section 74.2130 - Medium and time of settlement by bank.
Section 74.2140 - Right of charge-back or refund; liability of collecting bank; return of item.
Section 74.2160 - Insolvency and preference.
Section 74.4010 - When bank may charge customer’s account.
Section 74.4050 - Death or incompetence of customer.
Section 74.4070 - Payor bank’s right to subrogation on improper payment.
Section 74.5040 - Privilege of presenting bank to deal with goods; security interest for expenses.