Section 4-213 – Medium and Time of Settlement by Bank
(a) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearing-house rules, and the like, or agreement. In the absence of such prescription: (1) The medium of settlement is cash or credit to an account in a Federal Reserve bank of or specified by […]
Section 4-214 – Right of Charge-Back or Refund; Liability of Collecting Bank; Return of Item
(a) If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank, or otherwise to receive settlement for the item which is or becomes final, the bank may revoke the settlement given by it, charge-back the amount of any credit given […]
Section 4-110 – Electronic Presentment
(a) “Agreement for electronic presentment” means an agreement, clearing-house rule, or federal reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item (“presentment notice”) rather than delivery of the item itself. The agreement may provide for procedures governing retention, […]
Section 4-111 – Statute of Limitations
An action to enforce an obligation, duty, or right arising under this title must be commenced within 3 years after the cause of action accrues.
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.