§ 4—210. Security interest of collecting bank in items, accompanying documents and proceeds (a) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either: (1) in case of an item deposited in an account, to the extent to which credit given for the item has been […]
§ 4—211. When bank gives value for purposes of holder in due course For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item, if the bank otherwise complies with the requirements of section 3—302 of this title […]
§ 4—212. Presentment by notice of item not payable by, through, or at a bank; liability of drawer or indorser (a) Unless otherwise instructed, a collecting bank may present an item not payable by, through, or at a bank by sending to the party to accept or pay a written notice that the bank holds […]
§ 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 […]
§ 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 […]
§ 4—215. Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal (a) An item is finally paid by a payor bank when the bank has first done any of the following: (1) paid the item in cash; (2) settled for the item without […]
§ 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 […]
§ 4—301. Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank (a) If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of the banking day of receipt, the payor bank […]
§ 4—302. Payor bank’s responsibility for late return of item (a) If an item is presented to and received by a payor bank, the bank is accountable for the amount of: (1) a demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case in which it is […]
§ 4—303. When items subject to notice, stop-payment order, legal process, or setoff; order in which items may be charged or certified (a) Any knowledge, notice, or stop-payment order received by, legal process served upon, or setoff exercised by a payor bank comes too late to terminate, suspend, or modify the bank’s right or duty […]
§ 4—401. When bank may charge customer’s account (a) A bank may charge against the account of a customer an item that is properly payable from the account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between […]
§ 4—402. Bank’s liability to customer for wrongful dishonor; time of determining insufficiency of account (a) Except as otherwise provided in this article, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, but a bank may dishonor an item that would create an overdraft unless it has agreed […]
§ 4—403. Customer’s right to stop payment; burden of proof of loss (a) A customer or any person authorized to draw on the account if there is more than one person may stop payment of any item drawn on the customer’s account or close the account by an order to the bank describing the item […]
§ 4—404. Bank not obliged to pay check more than six months old A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, which is presented more than six months after its date, but it may charge its customer’s account for a payment […]
§ 4—405. Death or incompetence of customer (a) A payor or collecting bank’s authority to accept, pay, or collect an item or to account for proceeds of its collection, if otherwise effective, is not rendered ineffective by incompetence of a customer of either bank existing at the time the item is issued or its collection […]
§ 4—406. Customer’s duty to discover and report unauthorized signature or alteration (a) Upon the request of a customer, the bank shall return to a customer items shown as paid on a statement of accounts, or copies thereof. If the customer does not request that the items, or copies thereof, be returned, the bank shall […]
§ 4—407. Payor bank’s right to subrogation on improper payment If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and […]
§ 4—501. Handling of documentary drafts; duty to send for presentment and to notify customer of dishonor A bank that takes a documentary draft for collection shall present or send the draft and accompanying documents for presentment and, upon learning that the draft has not been paid or accepted in due course, shall seasonably notify […]
§ 4—502. Presentment of “on arrival” drafts If a draft or the relevant instructions require presentment “on arrival”, “when goods arrive” or the like, the collecting bank need not present until in its judgment a reasonable time for arrival of the goods has expired. Refusal to pay or accept because the goods have not arrived […]
§ 4—503. Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need Unless otherwise instructed and except as provided in Article 5 of this title, a bank presenting a documentary draft: (1) must deliver the documents to the drawee on acceptance of the draft if it is […]
