Ordinary Care (Banking) Law and Legal Definition

Pursuant to U.C.C. § 3-103, in case of a person engaged in business, ordinary care means observance of reasonable commercial standards, prevailing in the area in which the person is located, with respect to the business in which the person is engaged. In the case of a bank, taking an instrument for processing or collection or payment by automated means, reasonable commercial standards do not require the bank to examine the instrument when the failure to examine does not violate the bank's prescribed procedures. Moreover, the bank's procedures should not vary unreasonably from generally approved banking usage.