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HomeCommercial CodeDiv. 4Ch. 1§ 4102 Bank Liability By Location

§ 4102 Bank Liability By Location

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 4102 Bank Liability By Location

Key Takeaways

  • •If a bank does something wrong with your money (like not depositing a check), the rules where the bank is located decide if they're in trouble.
  • •If a bank has branches in different places, the rules where the branch is located decide if they did something wrong.
  • •If there are conflicting rules, this section wins over some other rules, but loses to others.

Example

You deposit a check at your local bank branch, but they lose it and your money doesn't go into your account.

The rules of the city or state where that bank branch is located will decide if the bank has to fix the mistake and give you your money.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 4102 Bank Liability By Location

(a) To the extent that items within this division are also within Divisions 3 (commencing with Section 3101) and 8 (commencing with Section 8101), they are subject to those divisions. If there is conflict, this division governs Division 3 (commencing with Section 3101), but Division 8 (commencing with Section 8101) governs this division. (b) The liability of a bank for action or nonaction with respect to an item handled by it for purposes of presentment, payment, or collection is governed by the law of the place where the bank is located. In the case of action or nonaction by or at a branch or separate office of a bank, its liability is governed by the law of the place where the branch or separate office is located. (Amended by Stats. 1992, Ch. 914, Sec. 8. Effective January 1, 1993.)

Last verified: January 23, 2026

Key Terms

liabilitybankDivision 3Division 8

Related Statutes

  • § 9104 Secured Party Control Over Deposit Accounts
  • § 10101 Uniform Commercial Code Leases
  • § 10102 Hybrid Lease Application
  • § 10103 Buyer In Ordinary Course Definition
  • § 10104 Lease Title And Consumer Law

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 4102.
View Official Source