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CA AB2858
Bill
Status
Failed
11/30/2016
Primary Sponsor
Kansen Chu
Click for details
AI Summary
- Amends Section 4202 of the Commercial Code regarding duties of collecting banks in commercial transactions
- Requires collecting banks to exercise ordinary care when presenting items, sending notices of dishonor or nonpayment, settling for items, and notifying transferors of losses or delays in transit
- Banks satisfy ordinary care requirements by taking proper action before their midnight deadline following receipt of an item, notice, or settlement
- Changes language to clarify that collecting banks "shall not be liable" (rather than "is not liable") for insolvency, neglect, misconduct, mistake, or default of other banks or persons, or for loss or destruction of items in possession of others or in transit
- Makes a nonsubstantive technical change to existing law
Legislative Description
Bank deposits and collections.
Last Action
Died at Desk.
11/30/2016
Full Bill Text
No bill text available