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 chapter for a period not exceeding two additional banking days without discharge of drawers or endorsers 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 chapter or by instructions is excused if (i) the delay is caused by interruption of communication facilities, suspension of payments by another bank, war, emergency conditions, failure of equipment, or other circumstances beyond the control of the bank, and (ii) the bank exercises such diligence as the circumstances require.
[C66, 71, 73, 75, 77, 79, 81, §554.4108]
94 Acts, ch 1167, §85 ~IC95, §554.4109
1994 amendments take effect July 1, 1995; 94 Acts, ch 1167, §122; for law prior to July 1, 1995, see §554.4108, Code 1993 ~ISection transferred from §554.4108 pursuant to directive in 94 Acts, ch 1167, §120 ~IFormer §554.4109 repealed effective July 1, 1995, by 94 Acts, ch 1167, §121, 122; for law prior to July 1, 1995, see Code 1993
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