KRS 355.4-109: 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 perm itted by this chapter for a period not exceeding two (2) additional

banking days without discharge of drawers or indorsers or liability to its transferor

or a prior party.

(2) Delay by a collecting bank or payor bank beyond time limits prescribed or permitted

by this chapter 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

(b) The bank exercises such diligence as the circumstances require.