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Can you summarize 4301.?
Collection of Items: Payor Banks > Deferred Posting; Recovery of Payment by Return of Items; Time of Dishonor.
Short Summary
This legal document governs the procedures and actions related to the collection of items by payor banks. It outlines the conditions under which a payor bank can revoke a settlement and recover any payment for a demand item received before midnight of the banking day of receipt. The payor bank can revoke the settlement and recover the payment if it returns the item or sends written notice of dishonor or nonpayment. Additionally, if a demand item is received by a payor bank for credit on its books, it can return the item or send notice of dishonor within the specified time limit. The document also clarifies that an item is considered dishonored when it is returned or notice is sent in accordance with the provided procedures. The document further specifies the methods of returning an item, depending on whether it was received through a clearinghouse or in other cases. No specific exemptions or penalties 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
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Guam