(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.
(Source: P.A. 87-582; 87-1135.)