reglab/statecodes huggingface dataset:
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 3-A: NEGOTIABLE INSTRUMENTS › Part 5: DISHONOR › 11 §3-1503. Notice of dishonor

§3-1503. Notice of dishonor
(1).
The obligation of an indorser stated in section 3-1415, subsection (1) and the obligation of a drawer stated in section 3-1414, subsection (4) may not be enforced unless:
(a). The indorser or drawer is given notice of dishonor of the instrument complying with this section; or   [PL 1993, c. 293, Pt. A, §2 (NEW).]
(b). Notice of dishonor is excused under section 3-1504, subsection (2).   [PL 1993, c. 293, Pt. A, §2 (NEW).]
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(2).
Notice of dishonor may be given by any person and by any commercially reasonable means, including an oral, written or electronic communication, and is sufficient if it reasonably identifies the instrument and indicates that the instrument has been dishonored or has not been paid or accepted. Return of an instrument given to a bank for collection is sufficient notice of dishonor.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(3).
Subject to section 3-1504, subsection (3), with respect to an instrument taken for collection by a collecting bank, notice of dishonor must be given:
(a). By the bank before midnight of the next banking day following the banking day on which the bank receives notice of dishonor of the instrument; or   [PL 1993, c. 293, Pt. A, §2 (NEW).]
(b). By any other person within 30 days following the day on which the person receives notice of dishonor.   [PL 1993, c. 293, Pt. A, §2 (NEW).]
With respect to any other instrument, notice of dishonor must be given within 30 days following the day on which dishonor occurs.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §A2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 3-A: NEGOTIABLE INSTRUMENTS › Part 5: DISHONOR › 11 §3-1504. Excused presentment and notice of dishonor

§3-1504. Excused presentment and notice of dishonor
(1).
Presentment for payment or acceptance of an instrument is excused if:
(a). The person entitled to present the instrument can not with reasonable diligence make presentment;   [PL 1993, c. 293, Pt. A, §2 (NEW).]
(b). The maker or acceptor has repudiated an obligation to pay the instrument or is dead or in insolvency proceedings;   [PL 1993, c. 293, Pt. A, §2 (NEW).]
(c). By the terms of the instrument presentment is not necessary to enforce the obligation of indorsers or the drawer;   [PL 1993, c. 293, Pt. A, §2 (NEW).]
(d). The drawer or indorser whose obligation is being enforced has waived presentment or otherwise has no reason to expect or right to require that the instrument be paid or accepted; or   [PL 1993, c. 293, Pt. A, §2 (NEW).]
(e). The drawer instructed the drawee not to pay or accept the draft or the drawee was not obligated to the drawer to pay the draft.   [PL 1993, c. 293, Pt. A, §2 (NEW).]
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(2).
Notice of dishonor is excused if:
(a). By the terms of the instrument, notice of dishonor is not necessary to enforce the obligation of a party to pay the instrument; or   [PL 1993, c. 293, Pt. A, §2 (NEW).]
(b). The party whose obligation is being enforced waived notice of dishonor. A waiver of presentment is also a waiver of notice of dishonor.   [PL 1993, c. 293, Pt. A, §2 (NEW).]
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(3).
Delay in giving notice of dishonor is excused if the delay was caused by circumstances beyond the control of the person giving the notice and the person giving the notice exercised reasonable diligence after the cause of the delay ceased to operate.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §A2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 3-A: NEGOTIABLE INSTRUMENTS › Part 5: DISHONOR › 11 §3-1505. Evidence of dishonor

§3-1505. Evidence of dishonor
(1).
The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated:
(a). A document regular in form as provided in subsection (2) which purports to be a protest;   [PL 1993, c. 293, Pt. A, §2 (NEW).]
(b). A purported stamp or writing of the drawee, payor bank or presenting bank on or accompanying the instrument stating that acceptance or payment has been refused unless reasons for the refusal are stated and the reasons are not consistent with dishonor; or   [PL 1993, c. 293, Pt. A, §2 (NEW).]
(c). A book or record of the drawee, payor bank or collecting bank, kept in the usual course of business which shows dishonor, even if there is no evidence of who made the entry.   [PL 1993, c. 293, Pt. A, §2 (NEW).]
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(2).
A protest is a certificate of dishonor made by a United States consul or vice-consul, or a notary public or other person authorized to administer oaths by the law of the place where dishonor occurs. It may be made upon information satisfactory to that person. The protest must identify the instrument and certify either that presentment has been made or, if not made, the reason why it was not made, and that the instrument has been dishonored by nonacceptance or nonpayment. The protest may also certify that notice of dishonor has been given to some or all parties.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §A2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 3-A: NEGOTIABLE INSTRUMENTS › Part 6: DISCHARGE AND PAYMENT › 11 §3-1601. Discharge and effect of discharge

§3-1601. Discharge and effect of discharge
(1).
The obligation of a party to pay the instrument is discharged as stated in this Article or by an act or agreement with the party that would discharge an obligation to pay money under a simple contract.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(2).
Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §A2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 3-A: NEGOTIABLE INSTRUMENTS › Part 6: DISCHARGE AND PAYMENT › 11 §3-1602. Payment

§3-1602. Payment
(1).
Subject to subsection (2), an instrument is paid to the extent payment is made:
(a). By or on behalf of a party obliged to pay the instrument; and   [PL 1993, c. 293, Pt. A, §2 (NEW).]
(b). To a person entitled to enforce the instrument.   [PL 1993, c. 293, Pt. A, §2 (NEW).]
To the extent of the payment, the obligation of the party obliged to pay the instrument is discharged even though payment is made with knowledge of a claim to the instrument under section 3‑306 by another person.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(2).
The obligation of a party to pay the instrument is not discharged under subsection (1) if:
(a). A claim to the instrument under section 3‑1306 is enforceable against the party receiving payment and:
(i) Payment is made with knowledge by the payor that payment is prohibited by injunction or similar process of a court of competent jurisdiction; or
(ii) In the case of an instrument other than a cashier's check, teller's check or certified check, the party making payment accepted, from the person having a claim to the instrument, indemnity against loss resulting from refusal to pay the person entitled to enforce the instrument; or   [PL 1993, c. 293, Pt. A, §2 (NEW).]
(b). The person making payment knows that the instrument is a stolen instrument and pays a person that the person making payment knows is in wrongful possession of the instrument.   [PL 1993, c. 293, Pt. A, §2 (NEW).]
[PL 1993, c. 293, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §A2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 3-A: NEGOTIABLE INSTRUMENTS › Part 6: DISCHARGE AND PAYMENT › 11 §3-1603. Tender of payment

§3-1603. Tender of payment
(1).
If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(2).
If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an indorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(3).
If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is deemed to have made tender of payment on the due date to the person entitled to enforce the instrument.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §A2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 3-A: NEGOTIABLE INSTRUMENTS › Part 6: DISCHARGE AND PAYMENT › 11 §3-1604. Discharge by cancellation or renunciation

§3-1604. Discharge by cancellation or renunciation
(1).
A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument:
(a). By an intentional voluntary act, such as surrender of the instrument to the party, destruction, mutilation or cancellation of the instrument, cancellation or striking out of the party's signature or the addition of words to the instrument indicating discharge; or   [PL 1993, c. 293, Pt. A, §2 (NEW).]
(b). By agreeing not to sue or otherwise renouncing rights against the party by a signed writing.   [PL 1993, c. 293, Pt. A, §2 (NEW).]
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(2).
Cancellation or striking out of an indorsement pursuant to subsection (1) does not affect the status and rights of a party derived from the indorsement.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §A2 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 1: GENERAL PROVISIONS AND DEFINITIONS › 11 §4-101. Short title

§4-101. Short title
This Article may be cited as "Uniform Commercial Code -- Bank Deposits and Collections."   [PL 1993, c. 293, Pt. B, §6 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B6 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 1: GENERAL PROVISIONS AND DEFINITIONS › 11 §4-102. Applicability

§4-102. Applicability
(1).
To the extent that items within this Article are also within Articles 3‑A and 8, they are subject to those Articles. If there is conflict, this Article governs Article 3‑A, but Article 8 governs this Article.
[PL 1993, c. 293, Pt. B, §7 (AMD).]
(2).
The liability of a bank for action or nonaction with respect to an item handled by it for purposes of presentment, payment or collection is governed by the law of the place where the bank is located. In the case of action or nonaction by or at a branch or separate office of a bank, its liability is governed by the law of the place where the branch or separate office is located.
[PL 1993, c. 293, Pt. B, §7 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B7 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 1: GENERAL PROVISIONS AND DEFINITIONS › 11 §4-103. Variation by agreement; measure of damages; action constituting ordinary care

§4-103. Variation by agreement; measure of damages; action constituting ordinary care
(1).
The effect of the provisions of this Article may be varied by agreement, but the parties to the agreement can not 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.
[PL 1993, c. 293, Pt. B, §8 (AMD).]
(2).
Federal Reserve regulations and operating circulars, clearinghouse rules and the like have the effect of agreements under subsection (1), whether or not specifically assented to by all parties interested in items handled.
[PL 1993, c. 293, Pt. B, §8 (AMD).]
(3).
Action or nonaction 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 nonaction consistent with clearinghouse rules and the like or with a general banking usage not disapproved by this Article, is prima facie the exercise of ordinary care.
[PL 1993, c. 293, Pt. B, §8 (AMD).]
(4).
The specification or approval of certain procedures by this Article is not disapproval of other procedures that may be reasonable under the circumstances.
[PL 1993, c. 293, Pt. B, §8 (AMD).]
(5).
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.
[PL 1993, c. 293, Pt. B, §8 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B8 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 1: GENERAL PROVISIONS AND DEFINITIONS › 11 §4-105. "Depositary bank"; "bank"; "payor bank"; "intermediary bank"; "collecting bank"; "presenting bank"

§4-105. "Depositary bank"; "bank"; "payor bank"; "intermediary bank"; "collecting bank"; "presenting bank"
In this Article, unless the context otherwise indicates, the following terms have the following meanings.   [PL 1993, c. 293, Pt. B, §10 (AMD).]
(1).
Depositary bank. "Depositary bank" means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter.
[PL 1993, c. 293, Pt. B, §10 (AMD).]
(1-A).
Bank. "Bank" means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union or trust company.
[PL 1993, c. 293, Pt. B, §10 (NEW).]
(2).
Payor bank. "Payor bank" means a bank that is the drawee of a draft.
[PL 1993, c. 293, Pt. B, §10 (AMD).]
(3).
Intermediary bank. "Intermediary bank" means a bank to which an item is transferred in course of collection, except the depositary or payor bank.
[PL 1993, c. 293, Pt. B, §10 (AMD).]
(4).
Collecting bank. "Collecting bank" means a bank handling an item for collection, except the payor bank.
[PL 1993, c. 293, Pt. B, §10 (AMD).]
(5).
Presenting bank. "Presenting bank" means a bank presenting an item except a payor bank.
[PL 1993, c. 293, Pt. B, §10 (AMD).]
(6).
Remitting bank.
[PL 1993, c. 293, Pt. B, §10 (RP).]
SECTION HISTORY
PL 1993, c. 293, §B10 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 1: GENERAL PROVISIONS AND DEFINITIONS › 11 §4-105-A. Payable through or payable at bank; collecting bank

§4-105-A. Payable through or payable at bank; collecting bank
(1).
If an item states that it is "payable through" a bank identified in the item:
(a). The item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item; and   [PL 1993, c. 293, Pt. B, §11 (NEW).]
(b). The item may be presented for payment only by or through the bank.   [PL 1993, c. 293, Pt. B, §11 (NEW).]
[PL 1993, c. 293, Pt. B, §11 (NEW).]
(2).
If an item states that it is "payable at" a bank identified in the item, the item is equivalent to a draft drawn on that bank.
[PL 1993, c. 293, Pt. B, §11 (NEW).]
(3).
If a draft names a nonbank drawee and it is unclear whether a bank named in the draft is a co-drawee or a collecting bank, the bank is a collecting bank.
[PL 1993, c. 293, Pt. B, §11 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §B11 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 1: GENERAL PROVISIONS AND DEFINITIONS › 11 §4-106. Separate office of a bank

§4-106. Separate office of a bank
A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under this Article and under Article 3-A.   [PL 1993, c. 293, Pt. B, §12 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B12 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 1: GENERAL PROVISIONS AND DEFINITIONS › 11 §4-107. Time of receipt of items

§4-107. Time of receipt of items
(1).
For the purpose of allowing time to process items, prove balances and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of 2 p.m. or later as a cutoff hour for the handling of money and items and the making of entries on its books.
[PL 1979, c. 541, Pt. A, §106 (AMD).]
(2).
An item or deposit of money received on any day after a cutoff hour so fixed or after the close of the banking day may be treated as being received at the opening of the next banking day.
[PL 1993, c. 293, Pt. B, §13 (AMD).]
SECTION HISTORY
PL 1979, c. 541, §A106 (AMD). PL 1993, c. 293, §B13 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 1: GENERAL PROVISIONS AND DEFINITIONS › 11 §4-108. Delays

§4-108. Delays
(1).
Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank and with or without the approval of any person involved, may waive, modify or extend time limits imposed or permitted by this Title for a period not exceeding 2 additional banking days without discharge of drawers or indorsers or liability to its transferor or a prior party.
[PL 1993, c. 293, Pt. B, §14 (AMD).]
(2).
Delay by a collecting bank or payor bank beyond time limits prescribed or permitted by this Title or by instructions is excused if:
(a). The delay is caused by interruption of communication or computer facilities, suspension of payments by another bank, war, emergency conditions, failure of equipment or other circumstances beyond the control of the bank; and   [PL 1993, c. 293, Pt. B, §14 (NEW).]
(b). The bank exercises such diligence as the circumstances require.   [PL 1993, c. 293, Pt. B, §14 (NEW).]
[PL 1993, c. 293, Pt. B, §14 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B14 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 1: GENERAL PROVISIONS AND DEFINITIONS › 11 §4-109. Process of posting (REPEALED)

§4-109. Process of posting
(REPEALED)
SECTION HISTORY
PL 1993, c. 293, §B15 (RP).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 1: GENERAL PROVISIONS AND DEFINITIONS › 11 §4-110. Electronic presentment

§4-110. Electronic presentment
(1).
"Agreement for electronic presentment" means an agreement, clearinghouse rule or Federal Reserve regulation or operating circular that provides that presentment of an item may be made by transmission of an image of an item or information describing that item, that is, a "presentment notice," rather than by delivery of the item itself. The "agreement for electronic presentment" may provide procedures governing retention, presentment, payment, dishonor and other matters concerning items subject to the agreement.
[PL 1993, c. 293, Pt. B, §16 (NEW).]
(2).
Presentment of an item pursuant to an "agreement for electronic presentment" is made when the presentment notice is received.
[PL 1993, c. 293, Pt. B, §16 (NEW).]
(3).
If presentment is made by presentment notice, a reference to "item" or "check" in this Article means the presentment notice unless the context otherwise indicates.
[PL 1993, c. 293, Pt. B, §16 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §B16 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 1: GENERAL PROVISIONS AND DEFINITIONS › 11 §4-111. Statute of limitations

§4-111. Statute of limitations
An action to enforce an obligation, duty or right arising under this Article must be commenced within 3 years after the cause of action accrues.   [PL 1993, c. 293, Pt. B, §17 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §B17 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-201. Status of collecting bank as agent and provisional status of credits; applicability of Article; item indorsed "pay any bank"

§4-201. Status of collecting bank as agent and provisional status of credits; applicability of Article; item indorsed "pay any bank"
(1).
Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes final, the bank, with respect to the item, is an agent or subagent of the owner of the item and any settlement given for the item is provisional. This provision applies regardless of the form of indorsement or lack of indorsement and even though credit given for the item is subject to immediate withdrawal as of right or is in fact withdrawn; but the continuance of ownership of an item by its owner and any rights of the owner to proceeds of the item are subject to rights of a collecting bank, such as those resulting from outstanding advances on the item and rights of recoupment or setoff. If an item is handled by banks for purposes of presentment, payment, collection or return, the relevant provisions of this Article apply even though action of the parties clearly establishes that a particular bank has purchased the item and is the owner of it.
[PL 1993, c. 293, Pt. B, §18 (AMD).]
(2).
After an item has been indorsed with the words "pay any bank" or the like, only a bank may acquire the rights of a holder until the item has been:
(a). Returned to the customer initiating collection; or   [PL 1993, c. 293, Pt. B, §18 (AMD).]
(b). Specially indorsed by a bank to a person who is not a bank.   [PL 1993, c. 293, Pt. B, §18 (AMD).]
[PL 1993, c. 293, Pt. B, §18 (AMD).]
SECTION HISTORY
PL 1979, c. 541, §A107 (AMD). PL 1993, c. 293, §B18 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-202. Responsibility for collection or return; when action timely

§4-202. Responsibility for collection or return; when action timely
(1).
A collecting bank must exercise ordinary care in:
(a). Presenting an item or sending it for presentment;   [PL 1993, c. 293, Pt. B, §19 (AMD).]
(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;   [PL 1993, c. 293, Pt. B, §19 (AMD).]
(c). Settling for an item when the bank receives final settlement; and
(d).   [PL 1993, c. 293, Pt. B, §19 (RP).]
(e). Notifying its transferor of any loss or delay in transit within a reasonable time after discovery thereof.
[PL 1993, c. 293, Pt. B, §19 (AMD).]
(2).
A collecting bank exercises ordinary care under subsection (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.
[PL 1993, c. 293, Pt. B, §19 (AMD).]
(3).
Subject to subsection (1), paragraph (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.
[PL 1993, c. 293, Pt. B, §19 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B19 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-203. Effect of instructions

§4-203. Effect of instructions
Subject to Article 3‑A concerning conversion of instruments (section 3‑1420) and restrictive indorsements (section 3‑1206) only a collecting bank's transferor can give instructions that affect the bank or constitute notice to it and a collecting bank is not liable to prior parties for any action taken pursuant to the instructions or in accordance with any agreement with its transferor.   [PL 1993, c. 680, Pt. A, §20 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B20 (AMD). PL 1993, c. 680, §A20 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-204. Methods of sending and presenting; sending directly to payor bank

§4-204. Methods of sending and presenting; sending directly to payor bank
(1).
A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved and the method generally used by it or others to present those items.
[PL 1993, c. 293, Pt. B, §21 (AMD).]
(2).
A collecting bank may send:
(a). An item directly to the payor bank;   [PL 1993, c. 293, Pt. B, §21 (AMD).]
(b). An item to a nonbank payor if authorized by its transferor; and   [PL 1993, c. 293, Pt. B, §21 (AMD).]
(c). An item other than documentary drafts to a nonbank payor, if authorized by Federal Reserve regulation or operating circular, clearinghouse rule or the like.   [PL 1993, c. 293, Pt. B, §21 (AMD).]
[PL 1993, c. 293, Pt. B, §21 (AMD).]
(3).
Presentment may be made by a presenting bank at a place where the payor bank or other payor has requested that presentment be made.
[PL 1993, c. 293, Pt. B, §21 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B21 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-205. Depositary bank holder of unindorsed item

§4-205. Depositary bank holder of unindorsed item
If a customer delivers an item to a depositary bank for collection:   [PL 1993, c. 293, Pt. B, §22 (NEW).]
(1).
The depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of delivery was a holder of the item, whether or not the customer indorses the item, and, if the bank satisfies the other requirements of section 3-1302, it is a holder in due course; and
[PL 1993, c. 293, Pt. B, §22 (RPR).]
(2).
The depositary bank warrants to collecting banks, the payor bank or other payor and the drawer that the amount of the item was paid to the customer or deposited to the customer's account.
[PL 1993, c. 293, Pt. B, §22 (RPR).]
SECTION HISTORY
PL 1993, c. 293, §B22 (RPR).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-206. Transfer between banks

§4-206. Transfer between banks
Any agreed method that identifies the transferor bank is sufficient for the item's further transfer to another bank.   [PL 1993, c. 293, Pt. B, §23 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B23 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-207. Warranties of customer and collecting bank on transfer or presentment of items; time for claims (REPEALED)

§4-207. Warranties of customer and collecting bank on transfer or presentment of items; time for claims
(REPEALED)
SECTION HISTORY
PL 1993, c. 293, §B24 (RP).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-207-C. Encoding and retention warranties

§4-207-C. Encoding and retention warranties
(1).
A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payor bank or other payor that the information is correctly encoded. If the customer of a depositary bank encodes, that bank also makes the warranty.
[PL 1993, c. 293, Pt. B, §27 (NEW).]
(2).
A person who undertakes to retain an item pursuant to an agreement for electronic presentment warrants to any subsequent collecting bank and to the payor bank or other payor that retention and presentment of the item comply with the agreement. If a customer of a depositary bank undertakes to retain an item, that bank also makes this warranty.
[PL 1993, c. 293, Pt. B, §27 (NEW).]
(3).
A person to whom warranties are made under this section and who took the item in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach, plus expenses and loss of interest incurred as a result of the breach.
[PL 1993, c. 293, Pt. B, §27 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §B27 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-208. Security interest of collecting bank in items, accompanying documents and proceeds

§4-208. Security interest of collecting bank in items, accompanying documents and proceeds
(1).
A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either:
(a). In case of an item deposited in an account, to the extent to which credit given for the item has been withdrawn or applied;
(b). In case of an item for which it has given credit available for withdrawal as of right, to the extent of the credit given whether or not the credit is drawn upon or there is a right of charge-back; or   [PL 1993, c. 293, Pt. B, §28 (AMD).]
(c). If it makes an advance on or against the item.
[PL 1993, c. 293, Pt. B, §28 (AMD).]
(2).
If credit for several items received at one time or pursuant to a single agreement is withdrawn or applied in part, the security interest remains upon all the items, any accompanying documents or the proceeds of either. For the purpose of this section, credits first given are first withdrawn.
[PL 1993, c. 293, Pt. B, §28 (AMD).]
(3).
Receipt by a collecting bank of a final settlement for an item is a realization on its security interest in the item, accompanying documents and proceeds. So long as the bank does not receive final settlement for the item or give up possession of the item or possession or control of the accompanying documents for purposes other than collection, the security interest continues to that extent and is subject to Article 9‑A, but:
(a). No security agreement is necessary to make the security interest enforceable (section 9‑1203, subsection (2), paragraph (c), subparagraph (i));   [PL 2009, c. 324, Pt. B, §24 (AMD); PL 2009, c. 324, Pt. B, §48 (AFF).]
(b). No filing is required to perfect the security interest; and
(c). The security interest has priority over conflicting perfected security interests in the item, accompanying documents or proceeds.
[PL 2009, c. 324, Pt. B, §24 (AMD); PL 2009, c. 324, Pt. B, §48 (AFF).]
SECTION HISTORY
PL 1993, c. 293, §B28 (AMD). PL 1999, c. 699, §B17 (AMD). PL 1999, c. 699, §B28 (AFF). PL 2009, c. 324, Pt. B, §24 (AMD). PL 2009, c. 324, Pt. B, §48 (AFF).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-209. When bank gives value for purposes of holder in due course

§4-209. When bank gives value for purposes of holder in due course
For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item, if the bank otherwise complies with the requirements of section 3-1302 on what constitutes a holder in due course.   [PL 1993, c. 293, Pt. B, §29 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B29 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-210. Presentment by notice of item not payable by, through or at a bank; liability of drawer or indorser

§4-210. Presentment by notice of item not payable by, through or at a bank; liability of drawer or indorser
(1).
Unless otherwise instructed, a collecting bank may present an item not payable by, through or at a bank by sending to the party to accept or pay a written notice that the bank holds the item for acceptance or payment. The notice must be sent in time to be received on or before the day when presentment is due and the bank must meet any requirement of the party to accept or pay under section 3-1501 by the close of the bank's next banking day after it knows of the requirement.
[PL 1993, c. 293, Pt. B, §30 (AMD).]
(2).
If presentment is made by notice and payment, acceptance or request for compliance with a requirement under section 3-1501 is not received by the close of business on the day after maturity or in the case of demand items by the close of business on the 3rd banking day after notice was sent, the presenting bank may treat the item as dishonored and charge any drawer or indorser by sending it notice of the facts.
[PL 1993, c. 293, Pt. B, §30 (AMD).]
SECTION HISTORY
PL 1979, c. 541, §A108 (AMD). PL 1993, c. 293, §B30 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-211. Media of remittance; provisional and final settlement in remittance cases (REPEALED)

§4-211. Media of remittance; provisional and final settlement in remittance cases
(REPEALED)
SECTION HISTORY
PL 1993, c. 293, §B31 (RP).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-211-A. Medium and time of settlement by bank

§4-211-A. Medium and time of settlement by bank
(1).
With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearinghouse rules and the like or agreement. In the absence of such prescription:
(a). The medium of settlement is cash or credit to an account in a Federal Reserve bank of or specified by the person to receive settlement; and   [PL 1993, c. 293, Pt. B, §32 (NEW).]
(b). The time of settlement is:
(i) With respect to tender of settlement by cash, a cashier's check or teller's check, when the cash or check is sent or delivered;
(ii) With respect to tender of settlement by credit in an account in a Federal Reserve bank, when the credit is made;
(iii) With respect to tender of settlement by a credit or debit to an account in a bank, when the credit or debit is made or, in the case of tender of settlement by authority to charge an account, when the authority is sent or delivered; or
(iv) With respect to tender of settlement by a funds transfer, when payment is made pursuant to section 4-1406, subsection (1) to the person receiving settlement.   [PL 1993, c. 293, Pt. B, §32 (NEW).]
[PL 1993, c. 293, Pt. B, §32 (NEW).]
(2).
If the tender of settlement is not by a medium authorized by subsection (1) or the time of settlement is not fixed by subsection (1), no settlement occurs until the tender of settlement is accepted by the person receiving settlement.
[PL 1993, c. 293, Pt. B, §32 (NEW).]
(3).
If settlement for an item is made by cashier's check or teller's check and, before its midnight deadline, the person receiving settlement:
(a). Presents or forwards the check for collection, settlement is final when the check is finally paid; or   [PL 1993, c. 293, Pt. B, §32 (NEW).]
(b). Fails to present or forward the check for collection, settlement is final at the midnight deadline of the person receiving settlement.   [PL 1993, c. 293, Pt. B, §32 (NEW).]
[PL 1993, c. 293, Pt. B, §32 (NEW).]
(4).
If settlement for an item is made by giving authority to charge the account of the bank giving settlement in the bank receiving settlement, settlement is final when the charge is made by the bank receiving settlement if there are funds available in the account for the amount of the item.
[PL 1993, c. 293, Pt. B, §32 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §B32 (NEW).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-212. Right of charge-back or refund; liability of collecting bank; return of item

§4-212. Right of charge-back or refund; liability of collecting bank; return of item
(1).
If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank or otherwise to receive settlement for the item which is or becomes final, the bank may revoke the settlement given by it, charge back the amount of any credit given for the item to its customer's account or obtain refund from its customer whether or not it is able to return the item, if by its midnight deadline or within a longer reasonable time after it learns the facts it returns the item or sends notification of the facts. If the return or notice is delayed beyond the bank's midnight deadline or a longer reasonable time after it learns the facts, the bank may revoke the settlement, charge back the credit or obtain refund from its customer, but it is liable for any loss resulting from the delay. These rights to revoke, charge back and obtain refund terminate if and when a settlement for the item received by the bank is or becomes final.
[RR 1993, c. 1, §30 (COR).]
(2).
[PL 1993, c. 293, Pt. B, §33 (RP).]
(2-A).
A collecting bank returns an item when it is sent or delivered to the bank's customer or transferor or pursuant to its instructions.
[PL 1993, c. 293, Pt. B, §33 (NEW).]
(3).
A depositary bank that is also the payor may charge back the amount of an item to its customer's account or obtain refund in accordance with the section governing return of an item received by a payor bank for credit on its books (section 4‑301).
[PL 1993, c. 293, Pt. B, §33 (AMD).]
(4).
The right to charge back is not affected by:
(a). Previous use of a credit given for the item; or   [PL 1993, c. 293, Pt. B, §33 (AMD).]
(b). Failure by any bank to exercise ordinary care with respect to the item, but a bank so failing remains liable.   [PL 1993, c. 293, Pt. B, §33 (AMD).]
[PL 1993, c. 293, Pt. B, §33 (AMD).]
(5).
A failure to charge back or claim refund does not affect other rights of the bank against the customer or any other party.
[PL 1993, c. 293, Pt. B, §33 (AMD).]
(6).
If credit is given in dollars as the equivalent of the value of an item payable in a foreign money, the dollar amount of any charge-back or refund must be calculated on the basis of the bank-offered spot rate for the foreign money prevailing on the day when the person entitled to the charge-back or refund learns that it will not receive payment in ordinary course.
[PL 1993, c. 293, Pt. B, §33 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B33 (AMD). RR 1993, c. 1, §30 (COR).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-213. Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal

§4-213. Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal
(1).
An item is finally paid by a payor bank when the bank has first done any of the following:
(a). Paid the item in cash;   [PL 1993, c. 293, Pt. B, §34 (AMD).]
(b). Settled for the item without having a right to revoke the settlement under statute, clearinghouse rule or agreement; or   [PL 1993, c. 293, Pt. B, §34 (AMD).]
(c).   [PL 1993, c. 293, Pt. B, §34 (RP).]
(d). Made a provisional settlement for the item and failed to revoke the settlement in the time and manner permitted by statute, clearinghouse rule or agreement.   [PL 1979, c. 541, Pt. A, §109 (AMD).]
[PL 1993, c. 293, Pt. B, §34 (AMD).]
(1-A).
If provisional settlement for an item does not become final, the item is not finally paid.
[PL 1993, c. 293, Pt. B, §34 (NEW).]
(2).
If provisional settlement for an item between the presenting and payor banks is made through a clearinghouse or by debits and credits in an account between them, then to the extent that provisional debits or credits for the item are entered in accounts between the presenting and payor banks or between the presenting and successive prior collecting banks seriatim, they become final upon final payment of the item by the payor bank.
[PL 1993, c. 293, Pt. B, §34 (AMD).]
(3).
If a collecting bank receives a settlement for an item which is or becomes final, the bank is accountable to its customer for the amount of the item and any provisional credit given for the item in an account with its customer becomes final.
[PL 1993, c. 293, Pt. B, §34 (AMD).]
(4).
Subject to applicable law stating a time for availability of funds and any right of the bank to apply the credit to an obligation of the customer, credit given by a bank for an item in a customer's account becomes available for withdrawal as of right:
(a). If the bank has received a provisional settlement for the item, when the settlement becomes final and the bank has had a reasonable time to receive return of the item and the item has not been received within that time; or   [PL 1993, c. 293, Pt. B, §34 (AMD).]
(b). If the bank is both the depositary bank and the payor bank and the item is finally paid, at the opening of the bank's 2nd banking day following receipt of the item.   [PL 1993, c. 293, Pt. B, §34 (AMD).]
[PL 1993, c. 293, Pt. B, §34 (AMD).]
(5).
Subject to applicable law stating a time for availability of funds and any right of a bank to apply a deposit to an obligation of the depositor, a deposit of money becomes available for withdrawal as of right at the opening of the bank's next banking day after receipt of the deposit.
[PL 1993, c. 293, Pt. B, §34 (AMD).]
SECTION HISTORY
PL 1979, c. 541, §§A109,A110 (AMD). PL 1993, c. 293, §B34 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 2: COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS › 11 §4-214. Insolvency and preference

§4-214. Insolvency and preference
(1).
If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, the item must be returned by the receiver, trustee or agent in charge of the closed bank to the presenting bank or the closed bank's customer.
[PL 1993, c. 293, Pt. B, §35 (AMD).]
(2).
If a payor bank finally pays an item and suspends payments without making a settlement for the item with its customer or the presenting bank which settlement is or becomes final, the owner of the item has a preferred claim against the payor bank.
(3).
If a payor bank gives or a collecting bank gives or receives a provisional settlement for an item and thereafter suspends payments, the suspension does not prevent or interfere with the settlement's becoming final if the finality occurs automatically upon the lapse of certain time or the happening of certain events.
[PL 1993, c. 293, Pt. B, §35 (AMD).]
(4).
If a collecting bank receives from subsequent parties settlement for an item, which settlement is or becomes final and the bank suspends payments without making a settlement for the item with its customer which settlement is or becomes final, the owner of the item has a preferred claim against the collecting bank.
[PL 1993, c. 293, Pt. B, §35 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B35 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 3: COLLECTION OF ITEMS: PAYOR BANKS › 11 §4-301. Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank

§4-301. Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank
(1).
If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of the banking day of receipt, the payor bank may revoke the settlement and recover the settlement, if, before it has made final payment and before its midnight deadline, it:
(a). Returns the item; or
(b). Sends written notice of dishonor or nonpayment, if the item is unavailable for return.   [PL 1993, c. 293, Pt. B, §36 (AMD).]
[PL 1993, c. 293, Pt. B, §36 (AMD).]
(2).
If a demand item is received by a payor bank for credit on its books, it may return the item or send notice of dishonor and may revoke any credit given or recover the amount thereof withdrawn by its customer, if it acts within the time limit and in the manner specified in subsection (1).
[PL 1993, c. 293, Pt. B, §36 (AMD).]
(3).
Unless previous notice of dishonor has been sent, an item is dishonored at the time when for purposes of dishonor it is returned or notice sent in accordance with this section.
(4).
An item is returned:
(a). As to an item presented through a clearinghouse, when it is delivered to the presenting or last collecting bank or to the clearinghouse or is sent or delivered in accordance with clearinghouse rules; or   [PL 1993, c. 293, Pt. B, §36 (AMD).]
(b). In all other cases, when it is sent or delivered to the bank's customer or transferor or pursuant to instructions.   [PL 1993, c. 293, Pt. B, §36 (AMD).]
[PL 1993, c. 293, Pt. B, §36 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B36 (AMD).
2023 Maine Revised Statutes › TITLE 11: UNIFORM COMMERCIAL CODE › Article 4: BANK DEPOSITS AND COLLECTIONS › Part 3: COLLECTION OF ITEMS: PAYOR BANKS › 11 §4-302. Payor bank's responsibility for late return of item

§4-302. Payor bank's responsibility for late return of item
(1).
If an item is presented to and received by a payor bank, the bank is accountable for the amount of:
(a). A demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case in which it is not also the depositary bank, retains the item beyond midnight of the banking day of receipt without settling for it or, whether or not it is also the depositary bank, does not pay or return the item or send notice of dishonor until after its midnight deadline; or   [PL 1993, c. 293, Pt. B, §37 (NEW).]
(b). Any other properly payable item, unless, within the time allowed for acceptance or payment of that item, the bank either accepts or pays the item or returns it and accompanying documents.   [PL 1993, c. 293, Pt. B, §37 (NEW).]
[PL 1993, c. 293, Pt. B, §37 (RPR).]
(2).
The liability of a payor bank to pay an item pursuant to subsection (1) is subject to defenses based on breach of a presentment warranty (section 4‑207‑B) or proof that the person seeking enforcement of the liability presented or transferred the item for the purpose of defrauding the payor bank.
[PL 1993, c. 293, Pt. B, §37 (RPR).]
SECTION HISTORY
PL 1993, c. 293, §B37 (RPR).