{"data":{"id":"us-ky/krs-355.4-103","jurisdiction":"us-ky","citation":"KRS 355.4-103","heading":"Variation by agreement -- Measure of damages -- Action constituting","body":"ordinary care.\n(1) The effect of the provisions of this article may be varied by agreement, but the\nparties to the agreement cannot disclaim a bank's responsibility for its lack of good\nfaith or failure to exercise ordinary care or limit the measure of damages for the lack\nor failure. However, the parties may determine by agreement the standards by which\nthe bank's responsibility is to be measured if those standards are not manifestl y\nunreasonable.\n(2) Federal Reserve regulations and operating circulars, clearing -house rules, and the\nlike have the effect of agreements under subsection (1) of this section, whether or\nnot specifically assented to by all parties interested in items handled.\n(3) Action or nonaction approved by this article or pursuant to Federal Reserve\nregulations or operating circulars is the exercise of ordinary care and, in the absence\nof special instructions, action or nonaction consistent with clearing -house rules and\nthe like or with a general banking usage not disapproved by this article, is prima\nfacie the exercise of ordinary care.\n(4) The specification or approval of certain procedures by this article is not disapproval\nof other procedures that may be reasonable under the circumstances.\n(5) The measure of damages for failure to exercise ordinary care in handling an item is\nthe amount of the item reduced by an amount that could not have been realized by\nthe exercise of ordinary care. If there is also bad faith it i ncludes any other damages\nthe party suffered as a proximate consequence.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33516","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:44Z","sha256":"a6ae07be939e3fe502a8afb22d828a166c420c2450eaa305903dc68c60b2070a","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4-102","next":"us-ky/krs-355.4-104"},"notice":"GroundRules: Original legal text. Not legal advice."}