(2) A payor bank is liable to its customer for damages proximately caused by the wrongful dishonor of an item. Liability is limited to actual damages proved and may include damages for an arrest or prosecution of the customer or other consequential damages. Whether any consequential damages are proximately caused by the wrongful dishonor is a question of fact to be determined in each case.
(3) A payor bank’s determination of the customer’s account balance on which a decision to dishonor for insufficiency of available funds is based may be made at a time between the time the item is received by the payor bank and the time that the payor bank returns the item or gives notice in lieu of return, and no more than one determination need be made. If, at the election of the payor bank, a subsequent balance determination is made for the purpose of reevaluating the bank’s decision to dishonor the item, the account balance at that time is determinative of whether a dishonor for insufficiency of availability funds is wrongful. [1961 c.726 §74.4020; 1993 c.545 §105]
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.