7-16a-203. Contractual waiver of Uniform Commercial Code provisions.

200 words·~1 min read·/ut/title-7/chapter-16a/7-16a-203·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Subject to Subsections (1)(b) and

(2), if the application of Title 70A, Uniform Commercial Code , is inconsistent with the operation of an automated teller machine, a point-of-sale terminal, or both, the requirements of Title 70A, Uniform Commercial Code , may be varied by contractual agreement of any:

(i)depository institution;

(ii)switching facility; or

(iii)clearinghouse as defined by Section 70A-4-104 .

(b)A contractual agreement under Subsection (1)(a) may not disclaim responsibility for or limit the measure of damages for a depository institution's, switching facility's, or clearing house's:

(i)lack of good faith; or

(ii)failure to exercise ordinary care.

(2)Notwithstanding Subsection (1)(a) , the commissioner may, after notice and hearing, require rescission or modification of any provision of a contractual agreement permitted by Subsection (1)(a) if:

(a)that provision relates to the rights and obligations of:

(i)account holders of depository institutions;

(ii)merchants;

(iii)merchant customers; or

(iv)others using or having access to automated teller machines, point-of-sale terminals, or both; and

(b)the commissioner finds the provision is unconscionable or contrary to the public interest.

Enacted by Chapter 111 , 1997 General Session