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Can you summarize 11 MERS Section 4-213?
COLLECTION OF ITEMS; DEPOSITARY AND COLLECTING BANKS > Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal
Short Summary
This legal document, part of the Maine Revised Statutes under the Uniform Commercial Code, pertains to the final payment of items by payor banks, the timing at which provisional debits and credits become final, and when certain credits become available for withdrawal. It outlines that an item is finally paid by a payor bank when it is paid in cash, settled without the right to revoke the settlement, or when a provisional settlement is made and not revoked within the permitted time. If provisional settlement for an item does not become final, the item is not considered finally paid. Provisional debits or credits for an item become final upon final payment of the item by the payor bank. A collecting bank is accountable to its customer for the amount of the item and any provisional credit given becomes final when a settlement for the item becomes final. Credit given by a bank for an item in a customer’s account becomes available for withdrawal as of right when the settlement becomes final and the bank has had a reasonable time to receive return of the item. Additionally, a deposit of money becomes available for withdrawal as of right at the opening of the bank’s next banking day after receipt of the deposit.
Whom does it apply to?
Payor banks, presenting banks, successive prior collecting banks, and collecting banks
What does it govern?
Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Maine