reglab/statecodes huggingface dataset:
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 34 - Liability of Parties › Section 3411 - Refusal to pay cashier's checks, teller's checks and certified checks

§ 3411. Refusal to pay cashier's checks, teller's checks and
certified checks.
(a) Definition.
--As used in this section, the term "obligated bank" means the acceptor of a certified check or the issuer of a cashier's check or teller's check bought from the issuer.
(b) Refusal to pay.
--If the obligated bank wrongfully:
(1) refuses to pay a cashier's check or certified check;
(2) stops payment of a teller's check; or
(3) refuses to pay a dishonored teller's check; the person asserting the right to enforce the check is entitled to compensation for expenses and loss of interest resulting from the nonpayment and may recover consequential damages if the obligated bank refuses to pay after receiving notice of particular circumstances giving rise to the damages.
(c) Expenses or consequential damages not recoverable under certain circumstances.
--Expenses or consequential damages under subsection (b) are not recoverable if the refusal of the obligated bank to pay occurs because:
(1) the bank suspends payments;
(2) the obligated bank asserts a claim or defense of the bank that it has reasonable grounds to believe is available against the person entitled to enforce the instrument;
(3) the obligated bank has a reasonable doubt whether the person demanding payment is the person entitled to enforce the instrument; or
(4) payment is prohibited by law.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 34 - Liability of Parties › Section 3412 - Obligation of issuer of note or cashier's check

§ 3412. Obligation of issuer of note or cashier's check.
The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder, or if the issuer signed an incomplete instrument, according to its terms when completed, to the extent stated in sections 3115 (relating to incomplete instrument) and 3407 (relating to alteration). The obligation is owed to a person entitled to enforce the instrument or to an indorser who paid the instrument under section 3415 (relating to obligation of indorser).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 34 - Liability of Parties › Section 3413 - Obligation of acceptor

§ 3413. Obligation of acceptor.
(a) General rule.
--The acceptor of a draft is obliged to pay the draft:
(1) according to its terms at the time it was accepted, even though the acceptance states that the draft is payable "as originally drawn" or equivalent terms;
(2) if the acceptance varies the terms of the draft, according to the terms of the draft as varied; or
(3) if the acceptance is of a draft that is an incomplete instrument, according to its terms when completed, to the extent stated in sections 3115 (relating to incomplete instrument) and 3407 (relating to alteration). The obligation is owed to a person entitled to enforce the draft or to the drawer or an indorser who paid the draft under section 3414 (relating to obligation of drawer) or 3415 (relating to obligation of indorser).
(b) Certified check or accepted draft.
--If the certification of a check or other acceptance of a draft states the amount certified or accepted, the obligation of the acceptor is that amount. If the certification or acceptance does not state an amount, the amount of the instrument is subsequently raised and the instrument is then negotiated to a holder in due course, the obligation of the acceptor is the amount of the instrument at the time it was taken by the holder in due course.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 34 - Liability of Parties › Section 3414 - Obligation of drawer

§ 3414. Obligation of drawer.
(a) Scope of section.
--This section does not apply to cashier's checks or other drafts drawn on the drawer.
(b) Obligation of drawer if unaccepted draft is dishonored.
--If an unaccepted draft is dishonored, the drawer is obliged to pay the draft:
(1) according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder; or
(2) if the drawer signed an incomplete instrument, according to its terms when completed, to the extent stated in sections 3115 (relating to incomplete instrument) and 3407
(relating to alteration). The obligation is owed to a person entitled to enforce the draft or to an indorser who paid the draft under section 3415 (relating to obligation of indorser).
(c) Draft accepted by bank.
--If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained.
(d) Draft accepted by drawer other than bank.
--If a draft is accepted and the acceptor is not a bank, the obligation of the drawer to pay the draft if the draft is dishonored by the acceptor is the same as the obligation of an indorser under section 3415(a) and (c).
(e) Disclaimer of liability.
--If a draft states that it is drawn "without recourse" or otherwise disclaims liability of the drawer to pay the draft, the drawer is not liable under subsection (b) to pay the draft if the draft is not a check. A disclaimer of the liability stated in subsection (b) is not effective if the draft is a check.
(f) Certain protections.
--If:
(1) a check is not presented for payment or given to a depositary bank for collection within 30 days after its date;
(2) the drawee suspends payments after expiration of the 30-day period without paying the check; and
(3) because of the suspension of payments, the drawer is deprived of funds maintained with the drawee to cover payment of the check; the drawer to the extent deprived of funds may discharge its obligation to pay the check by assigning to the person entitled to enforce the check the rights of the drawer against the drawee with respect to the funds.
Cross References.
Section 3414 is referred to in sections 3413, 3503, 3605, 5108 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 34 - Liability of Parties › Section 3415 - Obligation of indorser

§ 3415. Obligation of indorser.
(a) General rule.
--Subject to subsections (b), (c) and (d) and to section 3419(d) (relating to instruments signed for accommodation), if an instrument is dishonored, an indorser is obliged to pay the amount due on the instrument:
(1) according to the terms of the instrument at the time it was indorsed; or
(2) if the indorser indorsed an incomplete instrument, according to its terms when completed, to the extent stated in sections 3115 (relating to incomplete instrument) and 3407
(relating to alteration). The obligation of the indorser is owed to a person entitled to enforce the instrument or to a subsequent indorser who paid the instrument under this section.
(b) Disclaimer of liability.
--If an indorsement states that it is made "without recourse" or otherwise disclaims liability of the indorser, the indorser is not liable under subsection (a) to pay the instrument.
(c) Notice of dishonor.
--If notice of dishonor of an instrument is required by section 3503 (relating to notice of dishonor) and notice of dishonor complying with that section is not given to an indorser, the liability of the indorser under subsection (a) is discharged.
(d) Draft accepted by bank.
--If a draft is accepted by a bank after an indorsement is made, the liability of the indorser under subsection (a) is discharged.
(e) Discharge of liability.
--If an indorser of a check is liable under subsection (a) and the check is not presented for payment, or given to a depositary bank for collection, within 30 days after the day the indorsement was made, the liability of the indorser under subsection (a) is discharged.
Cross References.
Section 3415 is referred to in sections 3412, 3413, 3414, 3503, 5108 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 34 - Liability of Parties › Section 3416 - Transfer warranties

§ 3416. Transfer warranties.
(a) Warranties to transferees.
--A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by indorsement, to any subsequent transferee that:
(1) the warrantor is a person entitled to enforce the instrument;
(2) all signatures on the instrument are authentic and authorized;
(3) the instrument has not been altered;
(4) the instrument is not subject to a defense or claim in recoupment of any party which can be asserted against the warrantor; and
(5) the warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer.
(b) Damages for breach of warranty.
--A person to whom the warranties under subsection (a) are made and who took the instrument 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, but not more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach.
(c) Prohibition against disclaimer of warranties regarding checks.
--The warranties stated in subsection (a) cannot be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within 30 days after the claimant has reason to know of the breach and the identity of the warrantor, the liability of the warrantor under subsection (b) is discharged to the extent of any loss caused by the delay in giving notice of the claim.
(d) Action for breach of warranty.
--A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 34 - Liability of Parties › Section 3418 - Payment or acceptance by mistake

§ 3418. Payment or acceptance by mistake.
(a) General rule.
--Except as provided in subsection (c), if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that:
(1) payment of the draft had not been stopped pursuant to section 4403 (relating to right of customer to stop payment; burden of proof of loss); or
(2) the signature of the drawer of the draft was authorized; the drawee may recover the amount of the draft from the person to whom or for whose benefit payment was made or, in the case of acceptance, may revoke the acceptance. Rights of the drawee under this subsection are not affected by failure of the drawee to exercise ordinary care in paying or accepting the draft.
(b) Other cases.
--Except as provided in subsection (c), if an instrument has been paid or accepted by mistake and the case is not covered by subsection (a), the person paying or accepting may, to the extent permitted by the law governing mistake and restitution, recover the payment from the person to whom or for whose benefit payment was made or, in the case of acceptance, may revoke the acceptance.
(c) Limitation on remedies.
--The remedies provided by subsection (a) or (b) may not be asserted against a person who took the instrument in good faith and for value or who in good faith changed position in reliance on the payment or acceptance. This subsection does not limit remedies provided by section 3417 (relating to presentment warranties) or 4407 (relating to right of payor bank to subrogation on improper payment).
(d) Under certain circumstances an instrument is deemed dishonored.
--Notwithstanding section 4215 (relating to final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal), if an instrument is paid or accepted by mistake and the payor or acceptor recovers payment or revokes acceptance under subsection (a) or (b), the instrument is deemed not to have been paid or accepted and is treated as dishonored, and the person from whom payment is recovered has rights as a person entitled to enforce the dishonored instrument.
Cross References.
Section 3418 is referred to in section 3301 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 34 - Liability of Parties › Section 3419 - Instruments signed for accommodation

§ 3419. Instruments signed for accommodation.
(a) Accommodation party.
--If an instrument is issued for value given for the benefit of a party to the instrument ("accommodated party") and another party to the instrument ("accommodation party") signs the instrument for the purpose of incurring liability on the instrument without being a direct beneficiary of the value given for the instrument, the instrument is signed by the accommodation party "for accommodation."
(b) Liability of accommodation party.
--An accommodation party may sign the instrument as maker, drawer, acceptor or indorser and, subject to subsection (d), is obliged to pay the instrument in the capacity in which the accommodation party signs. The obligation of an accommodation party may be enforced notwithstanding any statute of frauds and whether or not the accommodation party receives consideration for the accommodation.
(c) Presumption.
--A person signing an instrument is presumed to be an accommodation party and there is notice that the instrument is signed for accommodation if the signature is an anomalous indorsement or is accompanied by words indicating that the signer is acting as surety or guarantor with respect to the obligation of another party to the instrument. Except as provided in section 3605 (relating to discharge of indorsers and accommodation parties), the obligation of an accommodation party to pay the instrument is not affected by the fact that the person enforcing the obligation had notice when the instrument was taken by that person that the accommodation party signed the instrument for accommodation.
(d) Limitation on liability.
--If the signature of a party to an instrument is accompanied by words indicating unambiguously that the party is guaranteeing collection rather than payment of the obligation of another party to the instrument, the signer is obliged to pay the amount due on the instrument to a person entitled to enforce the instrument only if:
(1) execution of judgment against the other party has been returned unsatisfied;
(2) the other party is insolvent or in an insolvency proceeding;
(3) the other party cannot be served with process; or
(4) it is otherwise apparent that payment cannot be obtained from the other party.
(e) Rights between accommodation and accommodated parties.
-- An accommodation party who pays the instrument is entitled to reimbursement from the accommodated party and is entitled to enforce the instrument against the accommodated party. An accommodated party who pays the instrument has no right of recourse against, and is not entitled to contribution from, an accommodation party.
Cross References.
Section 3419 is referred to in sections 3103, 3116, 3415, 3605 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 34 - Liability of Parties › Section 3420 - Conversion of instrument

§ 3420. Conversion of instrument.
(a) General rule.
--The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than a negotiation, from a person not entitled to enforce the instrument or a bank makes or obtains payment with respect to the instrument for a person not entitled to enforce the instrument or receive payment. An action for conversion of an instrument may not be brought by the issuer or acceptor of the instrument or a payee or indorsee who did not receive delivery of the instrument either directly or through delivery to an agent or a copayee.
(b) Measure of damages.
--In an action under subsection (a), the measure of liability is presumed to be the amount payable on the instrument, but recovery may not exceed the amount of the plaintiff's interest in the instrument.
(c) Limitation on liability.
--A representative, other than a depositary bank, who has in good faith dealt with an instrument or its proceeds on behalf of one who was not the person entitled to enforce the instrument is not liable in conversion to that person beyond the amount of any proceeds that it has not paid out.
Cross References.
Section 3420 is referred to in section 4203 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 35 - Dishonor › Extra - Chapter Notes

Enactment.
Chapter 35 was added July 9, 1992, P.L.507, No.97, effective in one year.
Prior Provisions.
Former Chapter 35, which related to presentment, notice of dishonor and protest, was
            added November 1, 1979, P.L.255, No.86, and repealed July 9, 1992, P.L.507, No.97,
            effective in one year.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 35 - Dishonor › Section 3501 - Presentment

§ 3501. Presentment.
(a) Definition of "presentment".
--"Presentment" means a demand made by or on behalf of a person entitled to enforce an instrument:
(1) to pay the instrument made to the drawee or a party obliged to pay the instrument or, in the case of a note or accepted draft payable at a bank, to the bank; or
(2) to accept a draft made to the drawee.
(b) Application of certain rules.
--The following rules are subject to Division 4 (relating to bank deposits and collections), agreement of the parties and clearinghouse rules and the like:
(1) Presentment may be made at the place of payment of the instrument and must be made at the place of payment if the instrument is payable at a bank in the United States; may be made by any commercially reasonable means, including an oral, written or electronic communication; is effective when the demand for payment or acceptance is received by the person to whom presentment is made; and is effective if made to any one of two or more makers, acceptors, drawees or other payors.
(2) Upon demand of the person to whom presentment is made, the person making presentment must:
(i) exhibit the instrument;
(ii) give reasonable identification and, if presentment is made on behalf of another person, reasonable evidence of authority to do so; and
(iii) sign a receipt on the instrument for any payment made or surrender the instrument if full payment is made.
(3) Without dishonoring the instrument, the party to whom presentment is made may:
(i) return the instrument for lack of a necessary indorsement; or
(ii) refuse payment or acceptance for failure of the presentment to comply with the terms of the instrument, an agreement of the parties or other applicable law or rule.
(4) The party to whom presentment is made may treat presentment as occurring on the next business day after the day of presentment if the party to whom presentment is made has established a cutoff hour not earlier than 2 p.m. for the receipt and processing of instruments presented for payment or acceptance and presentment is made after the cutoff hour.
Cross References.
Section 3501 is referred to in sections 3103, 4104, 4212 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 35 - Dishonor › Section 3503 - Notice of dishonor

§ 3503. Notice of dishonor.
(a) Requirement of notice.
--The obligation of an indorser stated in section 3415(a) (relating to obligation of indorser) and the obligation of a drawer stated in section 3414(d) (relating to obligation of drawer) may not be enforced unless:
(1) the indorser or drawer is given notice of dishonor of the instrument complying with this section; or
(2) notice of dishonor is excused under section 3504(b)
(relating to excused presentment and notice of dishonor).
(b) Manner of notice.
--Notice of dishonor may be given by any person; may be given 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.
(c) Time of notice.
--Subject to section 3504(c), with respect to an instrument taken for collection by a collecting bank, notice of dishonor must be given:
(1) 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
(2) by any other person within 30 days following the day on which the person receives notice of dishonor. With respect to any other instrument, notice of dishonor must be given within 30 days following the day on which dishonor occurs.
Cross References.
Section 3503 is referred to in sections 3415, 4104 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 35 - Dishonor › Section 3504 - Excused presentment and notice of dishonor

§ 3504. Excused presentment and notice of dishonor.
(a) Excused presentment.
--Presentment for payment or acceptance of an instrument is excused if:
(1) the person entitled to present the instrument cannot with reasonable diligence make presentment;
(2) the maker or acceptor has repudiated an obligation to pay the instrument or is dead or in insolvency proceedings;
(3) by the terms of the instrument presentment is not necessary to enforce the obligation of indorsers or the drawer;
(4) 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
(5) 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.
(b) Excused notice of dishonor.
--Notice of dishonor is excused if:
(1) by the terms of the instrument notice of dishonor is not necessary to enforce the obligation of a party to pay the instrument; or
(2) the party whose obligation is being enforced waived notice of dishonor. A waiver of presentment is also a waiver of notice of dishonor.
(c) Excused delay in notice of dishonor.
--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.
Cross References.
Section 3504 is referred to in sections 3502, 3503 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 35 - Dishonor › Section 3505 - Evidence of dishonor

§ 3505. Evidence of dishonor.
(a) Admissible evidence.--
The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated:
(1) A document regular in form as provided in subsection (b) which purports to be a protest.
(2) 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.
(3) 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.
(b) Protest.--
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.
Cross References.
Section 3505 is referred to in section 305 of Title 57 (Notaries Public).
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 36 - Discharge and Payment › Extra - Chapter Notes

Enactment.
Chapter 36 was added July 9, 1992, P.L.507, No.97, effective in one year.
Prior Provisions.
Former Chapter 36, which related to discharge, was added November 1, 1979, P.L.255,
            No.86, and repealed July 9, 1992, P.L.507, No.97, effective in one year.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 36 - Discharge and Payment › Section 3601 - Discharge and effect of discharge

§ 3601. Discharge and effect of discharge.
(a) Discharge.
--The obligation of a party to pay the instrument is discharged as stated in this division or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.
(b) Effect of discharge.
--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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 36 - Discharge and Payment › Section 3602 - Payment

§ 3602. Payment.
(a) General rule.
--Subject to subsection (b), an instrument is paid to the extent payment is made by or on behalf of a party obliged to pay the instrument and to a person entitled to enforce the instrument. 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 3306 (relating to claims to an instrument) by another person.
(b) Obligation not discharged.
--The obligation of a party to pay the instrument is not discharged under subsection (a) if:
(1) a claim to the instrument under section 3306 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
(2) the person making payment knows that the instrument is a stolen instrument and pays a person it knows is in wrongful possession of the instrument.
Cross References.
Section 3602 is referred to in section 3103 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 36 - Discharge and Payment › Section 3603 - Tender of payment

§ 3603. Tender of payment.
(a) Applicability of contract law.
--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.
(b) Effect of refusal of tender of payment.
--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.
(c) Obligation to pay interest discharged.
--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.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 36 - Discharge and Payment › Section 3604 - Discharge by cancellation or renunciation

§ 3604. Discharge by cancellation or renunciation.
(a) Methods of discharge.
--A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument:
(1) 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
(2) by agreeing not to sue or otherwise renouncing rights against the party by a signed writing.
(b) Certain rights unaffected.
--Cancellation or striking out of an indorsement pursuant to subsection (a) does not affect the status and rights of a party derived from the indorsement.
Cross References.
Section 3604 is referred to in section 3605 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 41 - General Provisions and Definitions › Section 4101 - Short title of division

§ 4101. Short title of division.
This division shall be known and may be cited as the Uniform Commercial Code, Article 4, Bank Deposits and Collections.
(July 9, 1992, P.L.507, No.97, eff. one year)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 41 - General Provisions and Definitions › Section 4102 - Applicability

§ 4102. Applicability.
(a) Commercial paper and investment securities.
--To the extent that items within this division are also within Division 3 (relating to negotiable instruments) and Division 8 (relating to investment securities), they are subject to the provisions of those divisions. If there is conflict, this division governs Division 3, but Division 8 governs this division.
(b) Law applicable regarding liability of bank with respect to items handled.
--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. (July 9, 1992, P.L.507, No.97, eff. one year)
Cross References.
Section 4102 is referred to in section 1301 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 41 - General Provisions and Definitions › Section 4103 - Variation by agreement; measure of damages; action constituting ordinary care

§ 4103. Variation by agreement; measure of damages; action
constituting ordinary care.
(a) Variation by agreement.
--The effect of the provisions of this division may be varied by agreement, but the parties to the agreement cannot disclaim the responsibility of a bank 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 responsibility of the bank is to be measured if those standards are not manifestly unreasonable.
(b) Rules and regulations having effect of agreements.
-- Federal Reserve regulations and operating circulars, clearinghouse rules and the like have the effect of agreements under subsection (a), whether or not specifically assented to by all parties interested in items handled.
(c) Certain action constituting ordinary care.
--Action or nonaction approved by this division 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 division, is prima facie the exercise of ordinary care.
(d) Effect of approval of certain procedures by this division.
--The specification or approval of certain procedures by this division is not disapproval of other procedures that may be reasonable under the circumstances.
(e) Measure of damages for failure to exercise ordinary care.
--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. (July 9, 1992, P.L.507, No.97, eff. one year)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 41 - General Provisions and Definitions › Section 4105 - "Bank"; "depositary bank"; "intermediary bank"; "collecting bank"; "payor bank"; "presenting bank."

§ 4105. "Bank"; "depositary bank"; "intermediary bank";
"collecting bank"; "payor bank"; "presenting bank."
The following words and phrases when used in this division shall have the meanings given to them in this section: "Bank." A person engaged in the business of banking, including a savings bank, savings and loan association, credit union or trust company. "Collecting bank." A bank handling an item for collection except the payor bank. "Depositary bank." 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. "Intermediary bank." A bank to which an item is transferred in course of collection except the depositary or payor bank. "Payor bank." A bank that is the drawee of a draft. "Presenting bank." A bank presenting an item except a payor bank. (July 9, 1992, P.L.507, No.97, eff. one year; June 8, 2001, P.L.123, No.18, eff. July 1, 2001)
2001 Amendment.
Act 18 amended the intro. par.
Cross References.
Section 4105 is referred to in sections 3103, 4104 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 41 - General Provisions and Definitions › Section 4106 - Payable through or payable at bank; collecting bank

§ 4106. Payable through or payable at bank; collecting bank.
(a) "Payable through" a bank.
--If an item states that it is "payable through" a bank identified in the item, the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and the item may be presented for payment only by or through the bank.
(b) "Payable at" a bank.
--If an item states that it is "payable at" a bank identified in the item, the item is equivalent to a draft drawn on the bank.
(c) Draft names nonbank drawee.
--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. (July 9, 1992, P.L.507, No.97, eff. one year)
1992 Amendment.
Act 97 added present section 4106 and renumbered former section 4106 to present section 4107.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 41 - General Provisions and Definitions › Section 4107 - Separate office of a bank

§ 4107. 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 division and under Division 3 (relating to negotiable instruments). (July 9, 1992, P.L.507, No.97, eff. one year)
1992 Amendment.
Act 97 amended and renumbered former section 4106 to present section 4107 and renumbered former section 4107 to present section 4108.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 41 - General Provisions and Definitions › Section 4108 - Time of receipt of items

§ 4108. Time of receipt of items.
(a) Cutoff hour for handling and book entries.
--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.
(b) Items or deposits received after cutoff hour.
--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. (July 9, 1992, P.L.507, No.97, eff. one year)
1992 Amendment.
Act 97 amended and renumbered former section 4107 to present section 4108 and renumbered former section 4108 to present section 4109.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 41 - General Provisions and Definitions › Section 4109 - Delays

§ 4109. Delays.
(a) Two-banking-day delay permitted in effort to secure payment.
--Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specified 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 two additional banking days without discharge of drawers or indorsers or liability to its transferor or a prior party.
(b) Delay excused by conditions beyond control of bank.
-- Delay by a collecting bank or payor bank beyond time limits prescribed or permitted by this title or by instructions is excused if 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 the bank exercises such diligence as the circumstances require. (July 9, 1992, P.L.507, No.97, eff. one year)
1992 Amendment.
Act 97 amended and renumbered former section 4108 to present section 4109 and deleted by amendment former section 4109.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 41 - General Provisions and Definitions › Section 4110 - Electronic presentment

§ 4110. Electronic presentment.
(a) Definition of "agreement for electronic presentment".
-- "Agreement for electronic presentment" means an agreement, clearinghouse rule or Federal Reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item ("presentment notice") rather than delivery of the item itself. The agreement may provide for procedures governing retention, presentment, payment, dishonor and other matters concerning items subject to the agreement.
(b) When presentment made.
--Presentment of an item pursuant to an agreement for presentment is made when the presentment notice is received.
(c) Presentment by presentment notice.
--If presentment is made by presentment notice, a reference to "item" or "check" in this division means the presentment notice unless the context otherwise indicates. (July 9, 1992, P.L.507, No.97, eff. one year)
1992 Amendment.
Act 97 added section 4110.
Cross References.
Section 4110 is referred to in section 4104 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 41 - General Provisions and Definitions › Section 4111 - Statute of limitations

§ 4111. Statute of limitations.
An action to enforce an obligation, duty or right arising under this division must be commenced within three years after the cause of action accrues. (July 9, 1992, P.L.507, No.97, eff. one year)
1992 Amendment.
Act 97 added section 4111.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 42 - Collection of Items: Depositary and Collecting Banks › Section 4201 - Status of collecting bank as agent and provisional status of credits; applicability of division; item indorsed "pay any bank."

§ 4201. Status of collecting bank as agent and provisional status of credits; applicability of division; item indorsed "pay any bank."
(a) Agency status of bank and provisional status of settlement.--
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 sub-agent 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 division apply even though action of the parties clearly establishes that a particular bank has purchased the item and is the owner of it.
(b) Effect of "pay any bank" indorsement.--
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:
(1) returned to the customer initiating collection; or
(2) specially indorsed by a bank to a person who is not a bank.
(July 9, 1992, P.L.507, No.97, eff. one year)
Cross References.
Section 4201 is referred to in section 3206 of this title.
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 42 - Collection of Items: Depositary and Collecting Banks › Section 4202 - Responsibility for collection or return; when action timely

§ 4202. Responsibility for collection or return; when action
timely.
(a) When collecting bank must exercise ordinary care.
--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 transferor of the bank 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) Exercise of ordinary care.
--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) Nonliability of bank for action of others.
--Subject to subsection (a)(1), 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. (July 9, 1992, P.L.507, No.97, eff. one year)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 42 - Collection of Items: Depositary and Collecting Banks › Section 4203 - Effect of instructions

§ 4203. Effect of instructions.
Subject to Division 3 (relating to negotiable instruments) concerning conversion of instruments (section 3420) and restrictive indorsements (section 3206), 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. (July 9, 1992, P.L.507, No.97, eff. one year)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 42 - Collection of Items: Depositary and Collecting Banks › Section 4204 - Methods of sending and presenting; sending directly to payor bank

§ 4204. Methods of sending and presenting; sending directly to
payor bank.
(a) Collecting bank to send items by reasonably prompt method.
--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.
(b) Persons to whom bank may send items.
--A collecting bank may send:
(1) an item directly to the payor bank;
(2) an item to a nonbank payor if authorized by its transferor; and
(3) an item other than documentary drafts to a nonbank payor, if authorized by Federal Reserve regulation or operating circular, clearinghouse rule or the like.
(c) Presentment where payor has requested.
--Presentment may be made by a presenting bank at a place where the payor bank or other payor has requested that presentment be made. (July 9, 1992, P.L.507, No.97, eff. one year)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 42 - Collection of Items: Depositary and Collecting Banks › Section 4205 - Depositary bank holder of unindorsed item

§ 4205. Depositary bank holder of unindorsed item.
If a customer delivers an item to a depositary bank for collection:
(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 3302 (relating to holder in due course), it is a holder in due course; and
(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. (July 9, 1992, P.L.507, No.97, eff. one year)
2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 13 - COMMERCIAL CODE › Chapter 42 - Collection of Items: Depositary and Collecting Banks › Section 4206 - Transfer between banks

§ 4206. Transfer between banks.
Any agreed method that identifies the transferor bank is sufficient for the further transfer of the item to another bank. (July 9, 1992, P.L.507, No.97, eff. one year)