Section 4-215 – Final Payment of Item by Payor Bank; When Provisional Debits and Credits Become Available for Withdrawal
(a) An item is finally paid by a payor bank when the bank has done any of the following: (1) Paid the item in cash; (2) Settled for the item without having a right to revoke the settlement under statute, clearing-house rule, or agreement; or (3) Made a provisional settlement for the item and failed to revoke the settlement […]
Section 4-216 – Insolvency and Preference
(a) If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, the item must be returned by the receiver, trustee, or agent in charge of the closed bank to the presenting bank or the closed bank’s customer. (b) If a […]
Section 4-201 – Status of Collecting Bank as Agent and Provisional Status of Credits; Applicability of Title; Item Indorsed “Pay Any Bank”
(a) Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes final, the bank, with respect to the item, is an agent or subagent of the owner of the item and any settlement given for the item is provisional. This provision applies […]
Section 4-202 – Responsibility for Collection or Return; When Action Timely
(a) A collecting bank must exercise ordinary care in: (1) Presenting an item or sending it for presentment; (2) Sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the bank’s transferor after learning that the item has not been paid or accepted, as the case may be; (3) Settling for an item […]
Section 4-203 – Effect of Instructions
Subject to Title 3 concerning conversion of instruments (§ 3-420) and restrictive indorsements (§ 3-206) only a collecting bank’s transferor can give instructions that affect the bank or constitute notice to it, and a collecting bank is not liable to prior parties for any action taken pursuant to the instructions or in accordance with any […]
Section 4-204 – Methods of Sending and Presenting; Sending Directly to Payor Bank
(a) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved, and the method generally used by it or others to present those items. (b) A collecting bank may send: (1) An item directly to […]
Section 4-205 – Depositary Bank Holder of Unindorsed Item
If a customer delivers an item to a depositary bank for collection: (1) The depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of delivery was a holder of the item, whether or not the customer indorses the item, and, if the […]
Section 4-101 – Short Title
This title may be cited as Uniform Commercial Code — Bank Deposits and Collections.
Section 4-206 – Transfer Between Banks
Any agreed method that identifies the transferor bank is sufficient for the item’s further transfer to another bank.
Section 4-102 – Applicability
(a) To the extent that items within this title are also within Titles 3 and 8, they are subject to those titles. If there is conflict, this title governs Title 3, but Title 8 governs this title. (b) The liability of a bank for action or nonaction with respect to an item handled by it for purposes […]