{"data":{"id":"us-ky/krs-355.4-202","jurisdiction":"us-ky","citation":"KRS 355.4-202","heading":"Responsibility for collection or return -- When action timely.","body":"(1) A collecting bank must exercise ordinary care in:\n(a) Presenting an item or sending it for presentment;\n(b) Sending notice of dishonor or nonpayment or returning an item other than a\ndocumentary draft to the bank's transferor after learning that the item h as not\nbeen paid or accepted, as the case may be;\n(c) Settling for an item when the bank receives final settlement; and\n(d) Notifying its transferor of any loss or delay in transit within a reasonable time\nafter discovery thereof.\n(2) A collecting bank exe rcises ordinary care under subsection (1) of this section by\ntaking proper action before its midnight deadline following receipt of an item,\nnotice, or settlement. Taking proper action within a reasonably longer time may\nconstitute the exercise of ordinary  care, but the bank has the burden of establishing\ntimeliness.\n(3) Subject to subsection (1)(a) of this section, a bank is not liable for the insolvency,\nneglect, misconduct, mistake, or default of another bank or person or for loss or\ndestruction of an item in the possession of others or in transit.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33526","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"935f244c4b7b1ac182af8772bb26ce7865c6840d30902d1e14421f6e8480bf30","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4-201","next":"us-ky/krs-355.4-203"},"notice":"GroundRules: Original legal text. Not legal advice."}