§12A-4-202.

§12A-4-202.
   
                       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 any loss or delay in transit within a
   reasonable time after discovery thereof.
   
   (b) A collecting bank exercises ordinary care under subsection (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 paragraph (1) of subsection (a) 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.