- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 4. Bank Deposits and Collections
- Section 202. Responsibility For Collection or Return; When Action Timely.
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. Effect of Instructions.
AS 45.04.202. 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 a loss or delay in transit within a reasonable time after discovery of the loss or delay.
- (b) A collecting bank exercises ordinary care under (a) 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.
- (c) Subject to (a)(1) 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.
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