Nevada § 104.4103 - Variation by agreement; measure of damages; action constituting ordinary care

§ 104.4103. Variation by agreement; measure of damages; action constituting ordinary care

1. 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 own 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. 2. Federal Reserve regulations and operating circulars, clearinghouse rules, and the

like have the effect of agreements under subsection 1, whether or not specifically

assented to by all parties interested in items handled. 3. Action or nonaction 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 nonaction consistent with clearinghouse rules and the like

or with a general banking usage not disapproved by this article, is prima facie the

exercise of ordinary care. 4. The specification or approval of certain procedures by this article is not disapproval

of other procedures that may be reasonable under the circumstances. 5. 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 other damages the party suffered as a proximate

consequence.