Applicability

(1)To the extent that items within this division are also within the scope of Divisions 3 and 8, they are subject to the provisions of those divisions. In the event of conflict the provisions of this division govern those of Division 3 but the provisions of Division 8 govern those of this division.

(2)The liability of a bank for action or nonaction with respect to any 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 COL120106 DIV. 4 BANK DEPOSITS AND COLLECTIONS office is located.