The Arizona Revised Statutes have been updated to include the revised sections from the 56th Legislature, 1st Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 56th Legislature, 2nd Regular Session, which convenes in January 2024.
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This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
47-4202 - Responsibility for collection or return; when action timely
47-4202. 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 non-payment 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 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 paragraph 1 of subsection 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.