Page:United States Statutes at Large Volume 77.djvu/728

 696

PUBLIC LAW 88-243-DEC. 30, 1963

[77 STAT.

(3) Action or non-action approved by this article or pursuant to Federal Reserve regulations or operating letters constitutes the exercise of ordinary care and, in the absence of special instructions, action or non-action consistent with clearing house rules and the like or with a general banking usage not disapproved by this article, prima facie constitutes the exercise of ordinary care. (•i) The specification or approval of certain pr(X'edures by this article does not constitute disapproval of other procedures which may be reasonable under the circumstances. (5) The measure of damages for failure to exercise ordinary care in handling an item is the amount of the item reduced by an amount which could not have been realized by the use of ordinary care, and where there is bad faith it includes other damages, if any/suffered by the party as a proximate consequence, § 28:4—104. Definitions and index of definitions (1) In this arficle unless the context otherwise requires (a) "Account" means any account with a bank and includes a checking, time, interest or savings account; (b) "Afternoon" means the period of a day between noon and midnight; (c) "Banking day*' means that part of any day on which a bank is open to the public for carrying on substantially all of its banking functions; (d) "Clearing house" means any association of banks or other payors regularly clearing items; (e) "Customer"' means any person having an account with a bank or for whom a bank has agreed to collect items and includes a bank carrying an account with another bank; (f) "Documentary draft" means any negotiable or nonnegotiable draft with accompanying documents, securities or other papers to be delivered against honor of the draft; (g) "Item" means any instrument for the payment of money even though it is not negotiable but does not include money; (h) "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; (i) "Properly payable" includes the availability of funds for payment at the time of decision to pay or dishonor; (j) "Settle" means to pay in cash, by clearing house settlement, in a charge or credit or by remittance, or otherwise as instructed. A settlement may be either provisional or final; (k) "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. (2) Other definitions applying to this article and the sections in which they appear are: "Collecting bank". Section 28:4—105. "Depositary bank". Section 28:4—105. "Intermediary bank". Section 28:4—105. "Payor bank". Section 28:4^105. "Presenting bank". Section 28:4—105. "Remitting bank". Section 28:4^105.

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