404.202 Responsibility for collection or return; when action timely.
(1) A collecting bank must exercise ordinary care in all of the following:
(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.
(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 sub. (1) 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 sub. (1) (a), 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: 1995 a. 449.
Structure Wisconsin Statutes & Annotations
Wisconsin Statutes & Annotations
Chapter 404 - Uniform commercial code — bank deposits and collections.
404.103 - Variation by agreement; measure of damages; action constituting ordinary care.
404.104 - Definitions and index of definitions.
404.106 - Payable through or payable at bank; collecting bank.
404.107 - Separate office of a bank.
404.108 - Time of receipt of items.
404.110 - Electronic presentment.
404.111 - Statute of limitations.
404.202 - Responsibility for collection or return; when action timely.
404.203 - Effect of instructions.
404.204 - Methods of sending and presenting; sending directly to payer bank.
404.205 - Depositary bank holder of unendorsed item.
404.206 - Transfer between banks.
404.207 - Transfer warranties.
404.208 - Presentment warranties.
404.209 - Encoding and retention warranties.
404.210 - Security interest of collecting bank in items, accompanying documents and proceeds.
404.211 - When bank gives value for purposes of holder in due course.
404.213 - Medium and time of settlement by bank.
404.214 - Right of charge-back or refund; liability of collecting bank; return of item.
404.216 - Insolvency and preference.
404.302 - Payer bank's responsibility for late return of item.
404.401 - When bank may charge customer's account.
404.403 - Customer's right to stop payment; burden of proof of loss.
404.404 - Bank not obligated to pay check more than 6 months old.
404.405 - Death or incompetence of customer.
404.406 - Customer's duty to discover and report unauthorized signature or alteration.
404.407 - Payer bank's right to subrogation on improper payment.
404.502 - Presentment of “on arrival" drafts.
404.504 - Privilege of presenting bank to deal with goods; security interest for expenses.