ORS 74.3020
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]

Source: Section 74.3020 — Payor bank’s responsibility for late return of item; defenses to liability of payor bank, https://www.­oregonlegislature.­gov/bills_laws/ors/ors074.­html.

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

74.1010
Short title
74.1020
Applicability
74.1030
Variation by agreement
74.1040
Definitions and index of definitions
74.1050
“Bank”
74.1060
Payable through or payable at bank
74.1070
Separate office of bank for computing time for actions, notices and orders
74.1080
Time of receipt of items
74.1090
Waiver of time limits
74.1110
Statute of limitations
74.1120
Electronic presentment
74.2010
Status of collecting bank as agent and provisional status of credits
74.2020
Responsibility for collection
74.2030
Effect of instructions
74.2040
Methods of sending and presenting
74.2050
Depositary bank as holder of unindorsed item
74.2060
Transfer between banks
74.2070
Warranties of customer and collecting bank on transfer of item
74.2080
Presentment warranties
74.2090
Encoding and retention warranties
74.2100
Security interest of collecting bank in items
74.2110
Bank as holder in due course
74.2120
Presentment by notice of item not payable by, through or at bank
74.2130
Medium and time of settlement by bank
74.2140
Right of charge-back or refund
74.2150
Final payment of item by payor bank
74.2160
Insolvency and preference
74.3010
Deferred posting
74.3020
Payor bank’s responsibility for late return of item
74.3030
When items subject to notice, stop payment order, legal process or setoff
74.4010
When bank may charge customer’s account
74.4020
Bank’s liability to customer for wrongful dishonor
74.4030
Customer’s right to stop payment
74.4040
Bank not obligated to pay check more than six months old
74.4050
Death or incompetence of customer
74.4060
Statements to customer
74.4070
Payor bank’s right to subrogation on improper payment
74.5010
Handling of documentary drafts
74.5020
Presentment of “on arrival” drafts
74.5030
Responsibility of presenting bank for documents and goods
74.5040
Privilege of presenting bank to deal with goods
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