{"data":{"id":"us-ny/n.y.-uniform-commercial-code-law-4-202","jurisdiction":"us-ny","citation":"N.Y. Uniform Commercial Code Law § 4-202","heading":"Responsibility for Collection; When Action Seasonable","body":"Section 4--202. Responsibility for Collection; When Action Seasonable.\n  (1) A collecting bank must use ordinary care in\n       (a) presenting an item or sending it for presentment; and\n       (b) sending notice of dishonor or non-payment or returning an\n           item other than a documentary draft to the bank's transferor\n           or directly to the depositary bank under subsection (2) of\n           Section 4--212 after learning that the item has not been paid\n           or accepted, as the case may be; and\n       (c) settling for an item when the bank receives final settlement;\n           and\n       (d) making or providing for any necessary protest; and\n       (e) notifying its transferor of any loss or delay in transit\n           within a reasonable time after discovery thereof.\n  (2) A collecting bank taking proper action before its midnight\ndeadline following receipt of an item, notice or payment acts\nseasonably; taking proper action within a reasonably longer time may be\nseasonable but the bank has the burden of so establishing.\n  (3) Subject to subsection (1) (a), a bank is not liable for the\ninsolvency, neglect, misconduct, mistake or default of another bank or\nperson or for loss or destruction of an item in transit or in the\npossession of others.","path":["Uniform Commercial Code Law","Article 4. Bank Deposits and Collections","Part 2. Collection of Items: Depositary and Collecting Banks"],"source_url":"https://legislation.nysenate.gov/api/3/laws/UCC/4-202","current_through":"2026-09-11","vintage":"","retrieved_at":"2026-09-14T19:32:45Z","sha256":"89775a4b0efb3926689ff87723521254812ac99d1f2180c2caf97c41deae76cb","source_id":"us-ny","stale":false,"prev":"us-ny/n.y.-uniform-commercial-code-law-4-201","next":"us-ny/n.y.-uniform-commercial-code-law-4-203"},"notice":"GroundRules: Original legal text. Not legal advice."}