The 2023 Florida Statutes (including Special Session C)

Title XXXIX
COMMERCIAL RELATIONS

Chapter 674
UNIFORM COMMERCIAL CODE: BANK DEPOSITS AND COLLECTIONS

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F.S. 674.103

674.103 Variation by agreement; measure of damages; action constituting ordinary care.—

(1) 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.

(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 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 nonaction, consistent with clearinghouse rules and the like or with a general banking usage not disapproved by this chapter is prima facie the exercise of ordinary care.

(4) The specification or approval of certain procedures by this chapter 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 any other damages the party suffered as a proximate consequence.

History.—s. 1, ch. 65-254; s. 9, ch. 92-82.

Note.—s. 4-103, U.C.C.; supersedes s. 659.33.

F.S. 674.103 on Google Scholar

F.S. 674.103 on Casetext

Amendments to 674.103

Arrestable Offenses / Crimes under Fla. Stat. 674.103

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 674.103.

Annotations, Discussions, Cases:

Cases from cite.case.law:

GILBERT CADDY, P. A. v. JP MORGAN CHASE BANK, N. A., 193 F. Supp. 3d 1294 (S.D. Fla. 2016)

. . . . § 674.103(1); see also Fla. Stat. . . .

ARBITRAJES FINANCIEROS, S. A. a v. BANK OF AMERICA, N. A. a a S. A. a v. N. A. a a, 605 F. App'x 820 (11th Cir. 2015)

. . . . § 674.103(1). . . .

W. WIAND, L. P. v. WELLS FARGO BANK, N. A., 86 F. Supp. 3d 1316 (M.D. Fla. 2015)

. . . . § 674.103(1). . . .

LAMM, IRA, v. STATE STREET BANK AND TRUST,, 749 F.3d 938 (11th Cir. 2014)

. . . . § 674.103(1), Florida’s version of U.C.C. § 4-103, which provides that banks cannot disclaim responsibility . . .

BANK OF AMERICA, N. A. v. PUTNAL SEED AND GRAIN, INC., 965 So. 2d 300 (Fla. Dist. Ct. App. 2007)

. . . . § 674.103(1), Fla. Stat. (2002). . . . its ... failure to exercise ordinary care or limit the measure of damages for the lack of failure.” § 674.103 . . . Accordingly, the Deposit Agreement is not in violation of section 674.103(1), and it is a valid agreement . . . Agreement has no effect on the bank’s duty to act with ordinary care, it is not void based on section 674.103 . . .

In MERIDIAN ASSET MANAGEMENT, INC. v. f k a, 296 B.R. 243 (Bankr. N.D. Fla. 2003)

. . . Stat. 674.103. . . .

SCADIF, S. A. a v. FIRST UNION NATIONAL BANK, a, 208 F. Supp. 2d 1352 (S.D. Fla. 2002)

. . . for which a collecting bank is liable if it fails to exercise ordinary care is set forth in section 674.103 . . .

ARKWRIGHT MUTUAL INSURANCE CO. v. NATIONSBANK, N. A. SOUTH f. k. a. N. A. N. A., 212 F.3d 1224 (11th Cir. 2000)

. . . . § 674.103(1); 19B Fla. Stat. Ann., U.C.C. . . . Comment to § 674.103 (1993) (indicating that § 674.103(1) “permits within wide limits variation of the . . . Florida Stat. § 674.103(1) allows a customer who wishes to use a facsimile signature machine for his . . . Stat. § 674.103(1). . . . . Stat. § 674.103(1) states: Section 1-102 states the general principles and rules for variation of the . . .

BUFMAN ORGANIZATION, a v. FEDERAL DEPOSIT INSURANCE CORPORATION, M, a, 82 F.3d 1020 (11th Cir. 1996)

. . . . § 674.103(5) (1993); U.C.C. § 4-103(5) (1990). . . . See Fla.Stat.Ann. § 674.103(1). . . .

GREAT WESTERN BANK, a v. STEVE JAMES FORD, INC., 915 F. Supp. 392 (S.D. Ga. 1996)

. . . . § 674.103(5) provides that the only damages recoverable are those that would not have occurred had . . . Southeastern Bank has conceded that, if § 674.103(5) applies, it cannot prove that it suffered damages . . .

REPUBLIC NATIONAL BANK OF MIAMI, v. JOHNSON, By GUARDIANSHIP PROGRAM OF DADE COUNTY, INC., 622 So. 2d 1015 (Fla. Dist. Ct. App. 1993)

. . . See § 674.103(3), Fla.Stat. (Supp.1992). . . .

FIRST UNION NATIONAL BANK, OF FLORIDA, v. FIRST FLORIDA BANK, N. A., 616 So. 2d 1168 (Fla. Dist. Ct. App. 1993)

. . . See § 674.103, Fla.Stat. (1985). . . .

NORSTAR BANK OF UPSTATE NY, v. SOUTHEAST BANK, N. A., 723 F. Supp. 187 (N.D.N.Y. 1989)

. . . . § 674.103(1). . . . However, defendant has not persuaded the court that § 674.103 requires more than is already mandated . . . F.S.A. § 674.103(3). The next question is how and whether the regulations apply in this instance. . . . Under F.S.A. § 674.103(5) the court is to award damages “[in] the amount of the item reduced by the amount . . .

GATHERCREST LTD. a a v. FIRST AMERICAN BANK AND TRUST, a, 649 F. Supp. 106 (M.D. Fla. 1985)

. . . . § 674.103(1). . . . . § 674.103(1), hereinafter § 674.103]. Western Air & Refrigerataion v. . . . See Fla.Stat. § 674.103(1). . . . Thus, it does not contravene the requirements of UCC § 4-103 (§ 674.103). . . . Fla.Stat. § 674.103(5). . . .

S. RATNER, d b a v. CENTRAL NATIONAL BANK OF MIAMI,, 414 So. 2d 210 (Fla. Dist. Ct. App. 1982)

. . . 674.212, supra, or whether the parties effectively varied the notice requirement pursuant to Sections 674.103 . . . Section 674.103(1) provides in part: The effect of the provisions of this chapter may be varied by agreement . . .

O. K. MOVING STORAGE CO. INC. v. EGLIN NATIONAL BANK,, 363 So. 2d 160 (Fla. Dist. Ct. App. 1978)

. . . The bank leans upon the provision of Section 674.103(5) which in part provides: “The measure of damages . . .