This law section says that this part of the Uniform Commercial Code is known as 'Bank Deposits and Collections'.

This section explains how different parts of California's commercial law interact. First, if there are overlaps in subjects between different divisions, there are rules about which division controls. Specifically, if there's a conflict, this division has priority over Division 3, but Division 8 has priority over this division. Second, if there's a dispute about how a bank handled an item for payment or collection, the laws of the place where the bank or its branch is located will apply.

This law allows people to change some banking rules by agreement, but you can't make a deal that excuses a bank from acting in good faith or from failing to be careful. You can agree on what "care" means if it’s reasonable. Federal rules and other banking guidelines are seen as agreements even if everyone hasn't formally agreed to them. Doing what these rules suggest is usually seen as being careful. Damages from not being careful are the item's value minus what would still be lost even with care; if there's bad faith, more damages could be added.

This section defines specific banking terms used within a particular division of the law. For instance, an "account" includes various types of bank accounts but not certificates of deposit. "Banking day" indicates when a bank is generally open for most of its operations. It also establishes what terms like "draft," "drawee," and "midnight deadline" mean in a banking context. Essentially, it provides clarity on the language pertaining to bank operations, items for collection or payment, and customer relationships within banking.

This law defines different types of banks involved in processing items like checks. It describes roles such as a 'bank' being any business engaged in banking, a 'depositary bank' as the first to handle an item like a check, and a 'payor bank' as the bank expected to pay on a draft. It also defines an 'intermediary bank' as one that processes items but isn't the first or the one paying, a 'collecting bank' as one handling the item except for payment, and a 'presenting bank' as one that presents the item for payment except the bank expected to pay.

This section explains what happens when a check or similar item mentions a bank as "payable through" or "payable at" that bank. In both cases, the bank is considered a collecting bank, which means it's responsible for processing the payment, but it cannot pay the item on its own. The item must be presented for payment through the bank. Additionally, if a draft names someone other than a bank to pay it, and it's not clear if a bank mentioned is supposed to help pay or just process it, the bank's role is only to process the payment.

This law states that when you are figuring out timelines or locations for banking actions, each branch or separate office of a bank is considered a separate bank. So, time limits and where you need to take any banking actions or send notices are calculated based on each branch individually.

This law section explains that a bank collecting a payment can extend deadlines by up to two extra days to secure payment on items drawn from a non-bank payor, even without approval from those involved. This won't affect the responsibilities of the person who wrote the check or others who have endorsed it. Additionally, if a bank is delayed due to uncontrollable circumstances such as communication breakdowns, equipment failure, or emergencies, the delay is excused as long as the bank acts diligently given the situation.

This law explains what an 'agreement for electronic presentment' is. Basically, it allows a bank or similar institution to use an electronic image or details about a check instead of having the physical check itself. The agreement can set rules about how these images or details are handled, such as how they are presented, retained, or even if they are refused or honored. An item is considered 'presented' when this electronic notice is received, and any mention of 'item' or 'check' usually refers to this electronic version, unless it's clear that the original version is meant.

This law states that if you want to take legal action to enforce a responsibility, obligation, or right under this particular division, you need to start the process within three years from the date the issue first arises.