The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 4-103)
-
§ 4—103. Variation by agreement; measure of damages; action constituting ordinary care
(a) The effect of the provisions of this article may be varied by agreement, but the parties
to the agreement cannot 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.
(b) Federal Reserve regulations and operating circulars, clearing-house rules, and the
like, have the effect of agreements under subsection (a) of this section, whether
or not specifically assented to by all parties interested in items handled.
(c) Action or non-action 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 non-action consistent with clearing-house rules and the like
or with a general banking usage not disapproved by this article, is prima facie the
exercise of ordinary care.
(d) The specification or approval of certain procedures by this article is not disapproval
of other procedures that may be reasonable under the circumstances.
(e) 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. (Added 1993, No. 158 (Adj. Sess.), § 13, eff. Jan. 1, 1995.)