New Jersey § 12a:4-202

§ 12a:4-202.

a. A collecting bank must exercise ordinary care in: (1) presenting an item or sending it for presentment; (2) sending notice of dishonor or nonpayment or returning an item other than a documentary

draft to the bank's transferor after learning that the item has not been paid or accepted,

as the case may be; (3) settling for an item when the bank receives final settlement; and (4) notifying its transferor of any loss or delay in transit within a reasonable time

after discovery thereof. b. A collecting bank exercises ordinary care under subsection a. of this section 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 paragraph (1) of subsection a. of this section, 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.