New Jersey § 12a:4-103

§ 12a:4-103.

a. The effect of the provisions of this chapter 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 chapter 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 chapter, is prima facie the

exercise of ordinary care. d. The specification or approval of certain procedures by this chapter 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.