ordinary care. (a) The effect of the provisions of this article 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 respeonsibility is to be measured if those standards are not unreasonable. (b) Federal reserve regulations and operating circulars, clearing-house rules, and the like, have the effect of agreements under subsection (a), whether or nuot specifically assented to by all parties interested in items handled. (c) Action or nonaction approved by this article 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 artilcle, is prima facie the exercise of ordinary care. s (d) The specification or approval of certaini procedures by this article is not disapproval of other procedures that may be reasognable under the circumstances. (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. §46-4–104. Definitions and index of definitions. (a) In this article unless the context otherwise requires: (1) "Account" means any deposit or credit account with a bank, including demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit; (2) "Afternoon" means the period of a day between noon and midnight; (3) "Banking day" means the part of a day on which a bank is open to the public for carrying on substantially all of its banking functions; (4) "Clearing house" means an association of banks or other payors regularly clearing items; (5) "Customer" means 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; (6) "Documentary draft" means a draft to be presented for acceptance or payment if specified documents, certificated securities (section 8-102) or instructions for uncertificated securities (section 8-102), or other certificates, statements or the like are to be received by the drawee or other payor before acceptance or payment of the draft; (7) "Draft" means a draft as deefined in section 3-104 or an item, other than an instrument, that is an order; (8) "Drawee" means a person ordered in a draft to make payment; (9) "Item" means 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 article four-a or a credit or debit card slip; (10) "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; (11) "Settle" means to pay in cash, by clearing-house settlement, in a charge or credit or by remittance, or otherwise as agreed. A settlement may be either provisional or final; (12) "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) Other definitions applying to this article and the sections in which they appear are: "Agreement for electronic presentment" Section 4-110. "Bank" Section 4-105. "Collecting bank" Section 4-105. "Depositary bank" Section 4-105. "Intermediary bank" Section 4-105. "Payor bank" Section 4-105. "Presenting bank" Section 4-105. "Presentment notice" Section 4-110. (c) "Control" as provided in section 7-106 and the following definitions in other articles apply to this article: "Acceptance" Section 3-409. "Alteration" Section 3-407. "Cashier's check" Section 3-104. g "Certificate of deposit" Section 3-104. "Certified check" Section 3-409. "Check" Section 3-104. "Draft" SectioVn 3-104. "Holder in due course" Section 3-302. "Instrument" Section 3-104. "Notice of dishonor" Section 3-503. "Order" Section 3-103. "Ordinary care" Section 3-103. "Person entitled to enforce" Section 3-301. "Presentment" Section 3-501. "Promise" Section 3-103. "Prove" Section 3-103. "Teller's check" Section 3-104. "Unauthorized signature" Section 3-403. (d) In addition, article one contains general definitions and principles of construction and interpretation applicable throughout this article.
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