§ 4-109. 4-109
145 words·~1 min read·
/us/ucc/a4/s4-109A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)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 permitted by this [Act] 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 by a collecting bank or payor bank beyond time limits prescribed or permitted by this [Act] or by instructions is excused if
(i)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
(ii)the bank exercises such diligence as the circumstances require.
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§ 4-109
4-109
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