Ask Reggi Your Question Now
Can you summarize 55-4-215 NMSA?
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 New Mexico Statutes Annotated 1978, specifically the Uniform Commercial Code, Bank Deposits and Collections, Collection of Items - Depositary and Collecting Banks, governs the final payment of items by payor banks, provisional settlements, and the availability of funds for withdrawal. It defines when an item is finally paid by a payor bank, including payment in cash, settlement without the right to revoke, and provisional settlements that become final. It also establishes that if provisional settlement for an item does not become final, the item is not finally paid. The document further explains that if provisional settlement is made through a clearing house or by debits or credits between banks, the provisional debits or credits become final upon final payment of the item by the payor bank. Additionally, it outlines when credits given by a bank for an item in a customer’s account become available for withdrawal. Overall, this document provides clarity on the process and requirements for final payment and availability of funds in banking transactions.
Whom does it apply to?
Payor banks, presenting banks, collecting banks, customers
What does it govern?
Final payment of items by payor banks, provisional settlements, availability of funds for withdrawal
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Mexico