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Can you summarize 6 DECO 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 Delaware Code, specifically the Uniform Commercial Code under the section of Bank Deposits and Collections, pertains to payor banks. It outlines the procedures and conditions for the settlement, revocation, and recovery of payment for demand items. If a payor bank settles for a demand item, it has the option to revoke the settlement and recover the payment by either returning the item or sending written notice of dishonor or nonpayment. The payor bank can also return the item or send notice of dishonor if a demand item is received for credit on its books. The document specifies the time limits and methods for dishonor and return of items. It also defines when an item is considered dishonored and provides guidelines for returning items presented through a clearing house or in other cases. The document does not mention any exemptions or penalties.
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
Delaware