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Can you summarize 42a CTGS Article 4, Section 301?
Bank Deposits and Collections - Secs. 42a-4-101 to 42a-4-504 > 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 General Statutes of Connecticut under the Uniform Commercial Code - Articles 1 to 10, specifically addresses the procedures and actions related to deferred posting, recovery of payment by return of items, time of dishonor, and return of items by payor banks. It outlines that if a payor bank settles for a demand item other than a documentary draft presented for immediate payment over the counter 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. The document also states that 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 within a specified time limit. The item is considered dishonored when it is returned or notice is sent. The document further explains the process of returning items and specifies different scenarios for returning items presented through a clearinghouse or in other cases. No penalties or exemptions are mentioned in this document.
Whom does it apply to?
Payor banks
What does it govern?
Deferred posting, recovery of payment by return of items, time of dishonor, return of items by payor bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Connecticut