Me. Rev. Stat. » Title 11
Maine Revised Statutes

Me. Rev. Stat. tit. 11, § 4-103 (2026)

Variation by agreement; measure of damages; action constituting ordinary care

✓ current as of May 2026
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(1).  The effect of the provisions of this Article may be varied by agreement, but the parties to the agreement can not 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.  
[PL 1993, c. 293, Pt. B, §8 (AMD).]
(2).  Federal Reserve regulations and operating circulars, clearinghouse rules and the like have the effect of agreements under subsection (1), whether or not specifically assented to by all parties interested in items handled.  
[PL 1993, c. 293, Pt. B, §8 (AMD).]
(3).  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 clearinghouse rules and the like or with a general banking usage not disapproved by this Article, is prima facie the exercise of ordinary care.  
[PL 1993, c. 293, Pt. B, §8 (AMD).]
(4).  The specification or approval of certain procedures by this Article is not disapproval of other procedures that may be reasonable under the circumstances.  
[PL 1993, c. 293, Pt. B, §8 (AMD).]
(5).  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.  
[PL 1993, c. 293, Pt. B, §8 (AMD).]
SECTION HISTORY
PL 1993, c. 293, §B8 (AMD).
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Notes of Decisions
Cited in 5 cases, 1981–2015 · leading case: Donovan v. Bank of Am., 574 F. Supp. 2d 192 (D. Me. 2008).
Sort: Relevance Newest Treatment
Donovan v. Bank of Am., 574 F. Supp. 2d 192 (D. Me. 2008). · cites it 6× “” 11 M.R.S.A. § 4-103(1). All that Donovan has to say on this point is: "[SJection 4-212 clearly implicates the duty of good faith and the obligation to use ordinary care and provides for damages.”
Diversified Foods, Inc. v. First Nat'l Bank of Boston, 605 A.2d 609 (Me. 1992). “11 M.R.S.A. § 4-103(1) provides, (1) The effect of the provisions of this Article may be varied by agreement, except that no agreement can disclaim a bank’s responsibility or its own lack of good faith or failure to exercise ordinary care .”
Mark Chartier v. Farm Fam. Life Ins. Co., 2015 ME 29 (Me. 2015). “” 11 M.R.S. § 4-103(1) (2014). 4 . A "[hjolder” is defined, inter alia, as "[t]he person in possession of a negotiable instrument that is payable either to bearer or to an identified person that is the person in possession.”
Button v. Peoples Heritage Sav. Bank, 666 A.2d 120 (Me. 1995). · cites it 2× “11 M.R.S.A. § 4-103 (1995) states the rules for variation by agreement of Article 4 of the Uniform Commercial Code as adopted by Maine.”
C-K Enter., Inc. v. Depositors Trust Co., 438 A.2d 262 (Me. 1981). “11 M.R.S.A. § 4-103. As given, the charge clearly expressed terminability at will while importing the *265 standard of reasonable conduct.”
— Me. Rev. Stat. tit. 11, § 4-103(1) — 4 cases
Diversified Foods, Inc. v. First Nat'l Bank of Boston, 605 A.2d 609 (Me. 1992). “11 M.R.S.A. § 4-103(1) provides, (1) The effect of the provisions of this Article may be varied by agreement, except that no agreement can disclaim a bank’s responsibility or its own lack of good faith or failure to exercise ordinary care .”
Mark Chartier v. Farm Fam. Life Ins. Co., 2015 ME 29 (Me. 2015). “” 11 M.R.S. § 4-103(1) (2014). 4 . A "[hjolder” is defined, inter alia, as "[t]he person in possession of a negotiable instrument that is payable either to bearer or to an identified person that is the person in possession.”
Donovan v. Bank of Am., 574 F. Supp. 2d 192 (D. Me. 2008). “” 11 M.R.S.A. § 4-103(1). All that Donovan has to say on this point is: "[SJection 4-212 clearly implicates the duty of good faith and the obligation to use ordinary care and provides for damages.”
Button v. Peoples Heritage Sav. Bank, 666 A.2d 120 (Me. 1995). “11 M.R.S.A. § 4-103 (1995) states the rules for variation by agreement of Article 4 of the Uniform Commercial Code as adopted by Maine.”
— Me. Rev. Stat. tit. 11, § 4-103(5) — 1 case
Donovan v. Bank of Am., 574 F. Supp. 2d 192 (D. Me. 2008). “” 11 M.R.S.A. § 4-103(1). All that Donovan has to say on this point is: "[SJection 4-212 clearly implicates the duty of good faith and the obligation to use ordinary care and provides for damages.”
— Me. Rev. Stat. tit. 11, § 4-103(l) — 1 case
Donovan v. Bank of Am., 574 F. Supp. 2d 192 (D. Me. 2008). “” 11 M.R.S.A. § 4-103(1). All that Donovan has to say on this point is: "[SJection 4-212 clearly implicates the duty of good faith and the obligation to use ordinary care and provides for damages.”
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