(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; and
(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.
Structure Delaware Code
Article 4. Bank Deposits and Collections
Part 2. Collection of Items; Depositary and Collecting Banks
§ 4-202. Responsibility for collection or return; when action timely.
§ 4-203. Effect of instructions.
§ 4-204. Methods of sending and presenting; sending directly to payor bank.
§ 4-205. Depositary bank holder of unindorsed item.
§ 4-206. Transfer between banks.
§ 4-208. Presentment warranties.
§ 4-209. Encoding and retention warranties.
§ 4-210. Security interest of collecting bank in items, accompanying documents and proceeds.
§ 4-211. When bank gives value for purposes of holder in due course.
§ 4-213. Medium and time of settlement by bank.
§ 4-214. Right of charge-back or refund; liability of collecting bank; return of item.