§ 4-103. Variation by agreement; measure of damages; certain action constituting ordinary care
West's Annotated Code of MarylandCommercial Law
MD Code, Commercial Law, § 4-103
§ 4-103. Variation by agreement; measure of damages; certain action constituting ordinary care
(a) The effect of the provisions of this title may be varied by agreement, but the parties to the agreement cannot disclaim a bank's responsibility 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 bank's responsibility is to be measured if those standards are not manifestly unreasonable.
(c) Action or nonaction approved by this title 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 clearing-house rules and the like or with a general banking usage not disapproved by this title, is prima facie the exercise of ordinary care.
(e) 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.
Credits
Added by Acts 1975, c. 49, § 2, eff. July 1, 1975. Amended by Acts 1996, c. 91, § 2, eff. Jan. 1, 1997.
Formerly Art. 95B, § 4-103.
MD Code, Commercial Law, § 4-103, MD COML § 4-103
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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