N.Y. UCC Law § 4-202

Section 4--202. Responsibility for Collection; When Action Seasonable.\n (1) A collecting bank must use ordinary care in\n (a) presenting an item or sending it for presentment; and\n (b) sending notice of dishonor or non-payment or returning an\n item other than a documentary draft to the bank's transferor\n or directly to the depositary bank under subsection (2) of\n Section 4--212 after learning that the item has not been paid\n or accepted, as the case may be; and\n (c) settling for an item when the bank receives final settlement;\n and\n (d) making or providing for any necessary protest; and\n (e) notifying its transferor of any loss or delay in transit\n within a reasonable time after discovery thereof.\n (2) A collecting bank taking proper action before its midnight\ndeadline following receipt of an item, notice or payment acts\nseasonably; taking proper action within a reasonably longer time may be\nseasonable but the bank has the burden of so establishing.\n (3) Subject to subsection (1) (a), a bank is not liable for the\ninsolvency, neglect, misconduct, mistake or default of another bank or\nperson or for loss or destruction of an item in transit or in the\npossession of others.\n