Ask Reggi Your Question Now
Can you summarize 11 MERS Section 4-301?
COLLECTION OF ITEMS: PAYOR BANKS > Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank
Short Summary
This legal document, part of the Maine Revised Statutes under the Uniform Commercial Code, pertains to the collection of items by payor banks. It outlines the actions a payor bank can take in certain situations. If a payor bank settles for a demand item other than a documentary draft presented before midnight of the banking day of receipt, it may revoke the settlement and recover the settlement by returning the item or sending written notice of dishonor or nonpayment. If a demand item is received by a payor bank for credit on its books, it may return the item or send notice of dishonor and revoke any credit given or recover the amount withdrawn by its customer. An item is considered dishonored when it is returned or notice is sent. The document also specifies the methods of returning an item based on whether it was presented through a clearinghouse or not. No penalties or exemptions are mentioned in this document.
Whom does it apply to?
Payor banks
What does it govern?
Collection of items by payor banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Maine