Limits On Shifting Losses By Deposit Account Agreement
LexisNexis (September 18, 2017, 11:42 AM EDT) -- Although the UCC permits the provisions of Article 4 to be varied by agreement, the parties to the agreement cannot disclaim a bank’s responsibility for its lack of good faith or failure to exercise ordinary care. UCC 4-103(a). Even in the context of an agreement between a commercial customer and a bank, the principles underlying this section continue to apply. A recent decision from the Sixth Circuit, applying Ohio law, highlights these principles.
The Sixth Circuit case. In Majestic Building Maintenance, Inc. v. Huntington Bancshares, Inc.,...