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La. Rev. Stat. § 10:4-202 (2026)

Responsibility for collection or return; when action timely

✓ current as of May 2026
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§4-202.  Responsibility for collection or return; when action timely

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

(1)  presenting an item or sending it for presentment;

(2)  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;

(3)  settling for an item when the bank receives final settlement; and

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

(b)  A collecting bank exercises ordinary care under Subsection (a) 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.

(c)  Subject to Subsection (a)(1), 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.

Acts 1992, No. 1133, §4, eff. July 1, 1993; Acts 1993, No. 948, §10, eff. Jan. 1, 1994.

Notes of Decisions
Cited in 3 cases (1 in the last 5 years), 2006–2024 · leading case: Simmons, Morris & Carroll, LLC v. Capital One, N.A., 144 So. 3d 1207 (La. Ct. App. 2014).
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Simmons, Morris & Carroll, LLC v. Capital One, N.A., 144 So. 3d 1207 (La. Ct. App. 2014). · cites it 2× “R.S. 10:4-202: (a)A collecting bank must exercise ordinary care in: (1) presenting an item or sending it for presentment; (2) 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…”
Bank One, NA v. Dunn, 927 So. 2d 645 (La. Ct. App. 2006). “R.S. 10:4-202. Notifying the customer of dishonor after the bank's midnight deadline may constitute the exercise of ordinary care if the bank took proper action within a reasonably longer time, but the bank has the burden of establishing timeliness.”
Found. Title & Escrow Co., LLC V. Regions Bank, N.A. (M.D. La. 2024). · cites it 2× “§ 10:4-202 (a)(2). A bank is a collecting bank when it handles an item for collection.”
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