13 Pa.C.S. Ch. 41

in effect

13 Pa.C.S. § 4101 Short title of division.

This division shall be known and may be cited as the Uniform Commercial Code, Article 4, Bank Deposits and Collections. (July 9, 1992, P.L.507, No.97, eff. one year)

13 Pa.C.S. § 4102 Applicability.

(a) Commercial paper and investment securities.--To the extent that items within this division are also within Division 3 (relating to negotiable instruments) and Division 8 (relating to investment securities), they are subject to the provisions of those divisions. If there is conflict, this division governs Division 3, but Division 8 governs this division. (b) Law applicable regarding liability of bank with respect to items handled.--The liability of a bank for action or nonaction with respect to an item handled by it for purposes of presentment, payment or collection is governed by the law of the place where the bank is located. In the case of action or nonaction by or at a branch or separate office of a bank, its liability is governed by the law of the place where the branch or separate office is located. (July 9, 1992, P.L.507, No.97, eff. one year) Cross References. Section 4102 is referred to in section 1301 of this title.

13 Pa.C.S. § 4103 Variation by agreement; measure of damages; action constituting ordinary care.

(a) Variation by agreement.--The effect of the provisions of this division may be varied by agreement, but the parties to the agreement cannot disclaim the responsibility of a bank for its lack of good faith or failure to exercise ordinary care or limit the measure of damages for the lack or failure. However, the parties may determine by agreement the standards by which the responsibility of the bank is to be measured if those standards are not manifestly unreasonable. (b) Rules and regulations having effect of agreements.--Federal Reserve regulations and operating circulars, clearinghouse rules and the like have the effect of agreements under subsection (a), whether or not specifically assented to by all parties interested in items handled. (c) Certain action constituting ordinary care.--Action or nonaction approved by this division or pursuant to Federal Reserve regulations or operating circulars is the exercise of ordinary care and, in the absence of special instructions, action or nonaction consistent with clearinghouse rules and the like or with a general banking usage not disapproved by this division, is prima facie the exercise of ordinary care. (d) Effect of approval of certain procedures by this division.--The specification or approval of certain procedures by this division is not disapproval of other procedures that may be reasonable under the circumstances. (e) Measure of damages for failure to exercise ordinary care.--The measure of damages for failure to exercise ordinary care in handling an item is the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care. If there is also bad faith it includes any other damages the party suffered as a proximate consequence. (July 9, 1992, P.L.507, No.97, eff. one year)

13 Pa.C.S. § 4104 Definitions and index of definitions.

(a) Definitions.--The following words and phrases when used in this division shall have, unless the context clearly indicates otherwise, the meanings given to them in this subsection: "Account." Any deposit or credit account with a bank, including a demand, time, savings, passbook, share draft or like account, other than an account evidenced by a certificate of deposit. "Afternoon." The period of a day between noon and midnight. "Banking day." The part of a day on which a bank is open to the public for carrying on substantially all of its banking functions. "Clearinghouse." An association of banks or other payors regularly clearing items. "Customer." A person having an account with a bank or for whom a bank has agreed to collect items, including a bank that maintains an account at another bank. "Documentary draft." A draft to be presented for acceptance or payment if specified documents, certificated securities (section 8102) or instructions for uncertificated securities (section 8102) or other certificates, statements or the like are to be received by the drawee or other payor before acceptance or payment of the draft. "Draft." A draft as defined in section 3104 (relating to negotiable instrument) or an item, other than an instrument, that is an order. "Drawee." A person ordered in a draft to make payment. "Item." An instrument or a promise or order to pay money handled by a bank for collection or payment. The term does not include a payment order governed by Division 4A (relating to funds transfers) or a credit or debit card slip. "Midnight deadline." With respect to a bank is midnight on its next banking day following the banking day on which it receives the relevant item or notice or from which the time for taking action commences to run, whichever is later. "Settle." To pay in cash, by clearinghouse settlement, in a charge or credit or by remittance, or otherwise as agreed. A settlement may be either provisional or final. "Suspends payments." With respect to a bank means that it has been closed by order of the supervisory authorities, that a public officer has been appointed to take it over or that it ceases or refuses to make payments in the ordinary course of business. (b) Index of other definitions in division.--Other definitions applying to this division and the sections in which they appear are: "Agreement for electronic presentment." Section 4110. "Bank." Section 4105. "Collecting bank." Section 4105. "Depositary bank." Section 4105. "Intermediary bank." Section 4105. "Payor bank." Section 4105. "Presenting bank." Section 4105. "Presentment notice." Section 4110. (c) Index of definitions in other divisions.--The following definitions in other divisions apply to this division: "Acceptance." Section 3409. "Alteration." Section 3407. "Cashier's check." Section 3104. "Certificate of deposit." Section 3104. "Certified check." Section 3409. "Check." Section 3104. "Control." Section 7106. "Good faith." (Deleted by amendment). "Holder in due course." Section 3302. "Instrument." Section 3104. "Notice of dishonor." Section 3503. "Order." Section 3103. "Ordinary care." Section 3103. "Person entitled to enforce." Section 3301. "Presentment." Section 3501. "Promise." Section 3103. "Prove." Section 3103. "Teller's check." Section 3104. "Unauthorized signature." Section 3403. (d) Applicability of general definitions and principles.--In addition Division 1 contains general definitions and principles of construction and interpretation applicable throughout this division. (July 9, 1992, P.L.507, No.97, eff. one year; May 22, 1996, P.L.248, No.44, eff. 180 days; Apr. 16, 2008, P.L.57, No.13, eff. 60 days) 2008 Amendment. Act 13 deleted the def. of "good faith" and added the def. of "control" in subsec. (c). 1996 Amendment. Act 44 amended subsec. (a). Cross References. Section 4104 is referred to in sections 3103, 4A105, 9102 of this title.

13 Pa.C.S. § 4105 "Bank"; "depositary bank"; "intermediary bank"; "collecting bank"; "payor bank"; "presenting bank." The following words and phrases when used in this division shall have the meanings given to them in this section:

"Bank." A person engaged in the business of banking, including a savings bank, savings and loan association, credit union or trust company. "Collecting bank." A bank handling an item for collection except the payor bank. "Depositary bank." The first bank to take an item even though it is also the payor bank unless the item is presented for immediate payment over the counter. "Intermediary bank." A bank to which an item is transferred in course of collection except the depositary or payor bank. "Payor bank." A bank that is the drawee of a draft. "Presenting bank." A bank presenting an item except a payor bank. (July 9, 1992, P.L.507, No.97, eff. one year; June 8, 2001, P.L.123, No.18, eff. July 1, 2001) 2001 Amendment. Act 18 amended the intro. par. Cross References. Section 4105 is referred to in sections 3103, 4104 of this title.

13 Pa.C.S. § 4106 Payable through or payable at bank; collecting bank.

(a) "Payable through" a bank.--If an item states that it is "payable through" a bank identified in the item, the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and the item may be presented for payment only by or through the bank. (b) "Payable at" a bank.--If an item states that it is "payable at" a bank identified in the item, the item is equivalent to a draft drawn on the bank. (c) Draft names nonbank drawee.--If a draft names a nonbank drawee and it is unclear whether a bank named in the draft is a co-drawee or a collecting bank, the bank is a collecting bank. (July 9, 1992, P.L.507, No.97, eff. one year) 1992 Amendment. Act 97 added present section 4106 and renumbered former section 4106 to present section 4107.

13 Pa.C.S. § 4107 Separate office of a bank.

A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under this division and under Division 3 (relating to negotiable instruments). (July 9, 1992, P.L.507, No.97, eff. one year) 1992 Amendment. Act 97 amended and renumbered former section 4106 to present section 4107 and renumbered former section 4107 to present section 4108.

13 Pa.C.S. § 4108 Time of receipt of items.

(a) Cutoff hour for handling and book entries.--For the purpose of allowing time to process items, prove balances and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of 2 p.m. or later as a cutoff hour for the handling of money and items and the making of entries on its books. (b) Items or deposits received after cutoff hour.--An item or deposit of money received on any day after a cutoff hour so fixed or after the close of the banking day may be treated as being received at the opening of the next banking day. (July 9, 1992, P.L.507, No.97, eff. one year) 1992 Amendment. Act 97 amended and renumbered former section 4107 to present section 4108 and renumbered former section 4108 to present section 4109.

13 Pa.C.S. § 4109 Delays.

(a) Two-banking-day delay permitted in effort to secure payment.--Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specified 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 title 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 excused by conditions beyond control of bank.--Delay by a collecting bank or payor bank beyond time limits prescribed or permitted by this title or by instructions is excused if 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 the bank exercises such diligence as the circumstances require. (July 9, 1992, P.L.507, No.97, eff. one year) 1992 Amendment. Act 97 amended and renumbered former section 4108 to present section 4109 and deleted by amendment former section 4109.

13 Pa.C.S. § 4110 Electronic presentment.

(a) Definition of "agreement for electronic presentment".--"Agreement for electronic presentment" means an agreement, clearinghouse rule or Federal Reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item ("presentment notice") rather than delivery of the item itself. The agreement may provide for procedures governing retention, presentment, payment, dishonor and other matters concerning items subject to the agreement. (b) When presentment made.--Presentment of an item pursuant to an agreement for presentment is made when the presentment notice is received. (c) Presentment by presentment notice.--If presentment is made by presentment notice, a reference to "item" or "check" in this division means the presentment notice unless the context otherwise indicates. (July 9, 1992, P.L.507, No.97, eff. one year) 1992 Amendment. Act 97 added section 4110. Cross References. Section 4110 is referred to in section 4104 of this title.

13 Pa.C.S. § 4111 Statute of limitations.

An action to enforce an obligation, duty or right arising under this division must be commenced within three years after the cause of action accrues. (July 9, 1992, P.L.507, No.97, eff. one year) 1992 Amendment. Act 97 added section 4111.

Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM&ttl=13Fetched: 10/16/2026