Florida Statute 674.202 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 674
UNIFORM COMMERCIAL CODE: BANK DEPOSITS AND COLLECTIONS

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F.S. 674.202

674.202 Responsibility for collection or return; when action timely.—

(1) A collecting bank must exercise ordinary care in:

(a) Presenting an item or sending it for presentment;

(b) Sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the bank’s transferor after learning that the item has not been paid or accepted, as the case may be;

(d) Notifying its transferor of any loss or delay in transit within a reasonable time after discovery thereof.

(2) A collecting bank exercises ordinary care under subsection (1) by taking proper action before its midnight deadline following receipt of an item, notice, or settlement. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness.

(3) Subject to subsection (1)(a), a bank is not liable for the insolvency, neglect, misconduct, mistake, or default of another bank or person or for loss or destruction of an item in the possession of others or in transit.

History.—s. 1, ch. 65-254; s. 20, ch. 92-82.

Note.—s. 4-202, U.C.C.; supersedes s. 674.74.

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Amendments to 674.202

Annotations, Discussions, Cases:

Cases Citing Statute 674.202

Total Results: 9

Capital City First Nat. Bank v. Lewis State Bank

341 So. 2d 1025, 21 U.C.C. Rep. Serv. (West) 183

District Court of Appeal of Florida | Filed: Jan 19, 1977 | Docket: 1393600

Cited 12 times | Published

obligation to present the check the following day, § 674.202(2), F.S. 1973, supra; or was Lewis, by reason

Gathercrest Ltd. v. First American Bank & Trust

649 F. Supp. 106, 1985 U.S. Dist. LEXIS 18147

District Court, M.D. Florida | Filed: Jul 8, 1985 | Docket: 1198821

Cited 9 times | Published

the requirements for a collecting bank under § 674.202(2). Under that section, MSB in this case has the

Ratner v. Central Nat. Bank of Miami

414 So. 2d 210, 34 U.C.C. Rep. Serv. (West) 228, 1982 Fla. App. LEXIS 19811

District Court of Appeal of Florida | Filed: Apr 13, 1982 | Docket: 1357654

Cited 8 times | Published

statutory duty of ordinary care pursuant to Section 674.202, Florida Statutes (1979), estops Central from

Bufman Organization v. Federal Deposit Insurance Corporation

82 F.3d 1020, 29 U.C.C. Rep. Serv. 2d (West) 905, 1996 U.S. App. LEXIS 11189

Court of Appeals for the Eleventh Circuit | Filed: May 13, 1996 | Docket: 473181

Cited 6 times | Published

timely notice of dishonor. See Fla.Stat.Ann. § 674.202(1)(b) (1993) (requiring a collecting bank to use

SCADIF, S.A. v. First Union National Bank

208 F. Supp. 2d 1352, 48 U.C.C. Rep. Serv. 2d (West) 232, 2002 U.S. Dist. LEXIS 12962, 2002 WL 1473458

District Court, S.D. Florida | Filed: Jul 5, 2002 | Docket: 2449794

Cited 5 times | Published

of items, but that obligation is found in section 674.202, Florida Statutes: A collecting bank must exercise

Pandol Bros., Inc. v. NCNB NAT. BANK OF FLA.

450 So. 2d 592, 38 U.C.C. Rep. Serv. (West) 944

District Court of Appeal of Florida | Filed: May 23, 1984 | Docket: 1433639

Cited 4 times | Published

of establishing that the time is reasonable. § 674.202(2), Fla. Stat. (1981). Because the foregoing requires

Florida National Bank v. Exchange Bank

277 So. 2d 313

District Court of Appeal of Florida | Filed: May 8, 1973 | Docket: 1439828

Cited 1 times | Published

would affirm the judgment appealed. NOTES [1] § 674.202(1)(a), F.S. "(1) A collecting bank must use ordinary

James Barry Wright v. City of Miami Gardens, etc.

200 So. 3d 765, 41 Fla. L. Weekly Supp. 387, 2016 Fla. LEXIS 2044, 2016 WL 4945053

Supreme Court of Florida | Filed: Sep 15, 2016 | Docket: 4422290

Published

as the circumstances require.”); see generally § 674.202, Fla. Stat. (2016) (entitled “Responsibility for

Bufman Organization v. Federal Deposit Insurance

82 F.3d 1020

Court of Appeals for the Eleventh Circuit | Filed: May 13, 1996 | Docket: 64024557

Published

timely notice of dishonor. See Fla. StatAnn. § 674.202(1)(b) (1993) (requiring a collecting bank to use