ORS 74.3020¹
Payor bank’s responsibility for late return of item
  • defenses to liability of payor bank

(1) Pursuant to ORS 74.2070 (Warranties of customer and collecting bank on transfer of item) (1), if an item is presented to and received by a payor bank, the bank is accountable for the amount of:

(a) A demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case in which it is not also the depositary bank, retains the item beyond midnight of the banking day of receipt without settling for it or, whether or not it is also the depositary bank, does not pay or return the item or send notice of dishonor until after its midnight deadline; or

(b) Any other properly payable item unless within the time allowed for acceptance or payment of that item the bank either accepts or pays the item or returns it and accompanying documents.

(2) The liability of a payor bank to pay an item pursuant to subsection (1) of this section is subject to defenses based on breach of a presentment warranty under ORS 74.2080 (Presentment warranties) or proof that the person seeking enforcement of the liability presented or transferred the item for the purpose of defrauding the payor bank. [1961 c.726 §74.3020 (Payor bank's responsibility for late return of item); 1993 c.545 §102]

Notes of Decisions

Receipt of check at defendant bank's data processing center, rather than branch bank's final determina­tion to dishonor, triggered midnight dead­line of this statute. South Sound Nat'l Bank v. First Interstate Bank, 65 Or App 553, 672 P2d 1194 (1983), Sup Ct review denied

Whether data processing center is part of bank opera­tion or is independent contractor is irrelevant for purpose of triggering midnight dead­line. South Sound Nat'l Bank v. First Interstate Bank, 65 Or App 553, 672 P2d 1194 (1983), Sup Ct review denied

1 Legislative Counsel Committee, CHAPTER 74—Bank Deposits and Collections, https://­www.­oregonlegislature.­gov/­bills_laws/­Archive/­2007ors74.­pdf (2007) (last ac­cessed Feb. 12, 2009).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2007, Chapter 74, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­074ano.­htm (2007) (last ac­cessed Feb. 12, 2009).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information