Printable Format84-4-102. Applicability. (a) To the extent that items within this article are also within articles 3 and 8, they are subject to those articles. If there is conflict, this article governs article 3 but article 8 governs this article.
(b) The liability of a bank for action or nonaction with respect to an item handled by it for purposes of presentment, payment or collection is governed by the law of the place where the bank is located. In the case of action or nonaction by or at a branch or separate office of a bank, its liability is governed by the law of the place where the branch or separate office is located.
History: L. 1965, ch. 564, § 202; L. 1991, ch. 296, § 72; February 1, 1992.
KANSAS COMMENT, 1996
This section is identical to the 1995 Official Text. The amendments are primarily stylistic and are not meant to change the substantive law.
Subsection (1) provides that, in case of conflict between rules governing negotiable instruments in general under Article 3 of the UCC and rules governing checks in the collection process under this Article, this Article controls.
Subsection (2) sets forth a conflict of laws rule which has received virtually no judicial interpretation because Article 4 has been adopted in all 50 states with little variation.
CASE ANNOTATIONS
1. General choice of law provisions in contracts incorporate only substantive law unless expressly agreed otherwise. Western Video Collectors v. Mercantile Bank, 23 Kan. App. 2d 703, 705, 935 P.2d 237 (1997).
2. UCC 4-401 sets no standards of care for depository banks — it sets standard of care payor bank owes its customers. ALG, Inc., v. Estate of Eldred, 29 Kan. App. 2d 1011, 35 P.3d 931 (2001).