Common use of Bank’s Exercise of Due Care Clause in Contracts

Bank’s Exercise of Due Care. Consistent with the practice of other banks, the Bank’s procedures may not provide for the sight examination of items with a face amount below an amount specified by the Bank from time to time. When acting in accordance with those procedures, the Bank will not be deemed to have failed to exercise ordinary care even though it does not make a sight examination of an item. The Bank will not be deemed to have failed to exercise ordinary care if an item is forged or altered so cleverly that a reasonable person would not detect the forgery or alteration.

Bank’s Exercise of Due Care. Consistent with the practice of other banks, the Bank’s procedures may not provide for the sight examination of items with a face amount below an amount specified specified by the Bank from time to time. When acting in accordance with those procedures, the Bank will not be deemed to have failed to exercise ordinary care even though it does not make a sight examination of an item. The Bank will not be deemed to have failed to exercise ordinary care if an item is forged or altered so cleverly that a reasonable person would not detect the forgery or alteration.