(1) Unless otherwise instructed, a collecting bank in a good faith effort to secure
payment of a specific 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 code for a period not exceeding 2 additional banking days without
discharge of drawers or indorsers or liability to its transferor or a prior party.
(2) Delay by a collecting bank or payor bank beyond time limits prescribed or permitted
by this code or by instructions is excused if:
(a) 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
(b) the bank exercises such diligence as the circumstances require.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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