§12A-4-103.

§12A-4-103.
   
                     VARIATION BY AGREEMENT; MEASURE OF
                                      
             DAMAGES; CERTAIN ACTION CONSTITUTING ORDINARY CARE
                                      
   (a) The effect of the provisions of this article may be varied by
   agreement, but the parties to the agreement cannot disclaim a bank's
   responsibility for its lack of good faith or failure to exercise
   ordinary care or limit the measure of damages for the lack or failure;
   however, the parties may determine by agreement the standards by which
   the bank's responsibility is to be measured if those standards are not
   manifestly unreasonable.
   
   (b) Federal Reserve regulations and operating circulars,
   clearing-house rules, and the like have the effect of agreements under
   subsection (a) of this section, whether or not specifically assented
   to by all parties interested in items handled.
   
   (c) Action or non-action approved by this article or pursuant to
   Federal Reserve regulations or operating circulars is the exercise of
   ordinary care and, in the absence of special instructions, action or
   non-action consistent with clearing-house rules and the like or with a
   general banking usage not disapproved by this article, is prima facie
   the exercise of ordinary care.
   
   (d) The specification or approval of certain procedures by this
   article is not disapproval of other procedures that may be reasonable
   under the circumstances.
   
   (e) The measure of damages for failure to exercise ordinary care in
   handling an item is the amount of the item reduced by an amount that
   could not have been realized by the exercise of ordinary care. If
   there is also bad faith it includes any other damages the party
   suffered as a proximate consequence.