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Regulation of Trade, Commerce and Investments > Uniform Commercial CodeBank Deposits and Collections
Short Summary
The Uniform Commercial CodeBank Deposits and Collections is a legal document that governs the regulations and definitions related to bank deposits and collections. It applies specifically to banks and determines their legal responsibilities in handling items for presentment, payment, or collection. The document states that the liability of a bank is governed by the law of the place where the bank is located. It also clarifies that if there is a conflict between this document and other chapters of the law, this document governs Chapter 3, while Chapter 8 governs this document. The document provides references to other sections and provisions related to bank deposits, collections, warranties, and other aspects of banking transactions. No specific exemptions or penalties are mentioned in this document. These legal documents, part of the Mississippi Code 1972, regulate various aspects of the collection of items by depositary and collecting banks. They cover the status of collecting banks as agents, provisional status of credits, ownership of items and rights of owners, responsibilities of collecting banks in presenting items, sending notice of dishonor or nonpayment, settling for items, and notifying transferor of loss or delay in transit. The documents also address methods of sending and presenting items for collection, responsibilities and liabilities of collecting banks in relation to instructions and actions taken during the collection process, transfer warranties made by customers or collecting banks, presentment warranties in the context of collection of items, encoding and retention warranties related to collection of items, security interest of collecting banks in items, accompanying documents, and proceeds, requirements for a bank to be considered a holder in due course, presentment of items not payable by, through, or at a bank, medium and time of settlement by a bank, charge-backs, refunds, and returns in the context of bank deposits and collections, final payment of items by payor bank, and insolvency and preference scenarios in relation to collection of items. These documents apply to various entities involved in the collection process, including collecting banks, owners of items, payor banks, customers initiating collection, transferors, prior parties, depositary banks, drawees, warrantors, persons receiving settlement, persons encoding information, persons retaining items, persons with security interest, persons transferring items and receiving settlement or other consideration, persons presenting items, persons receiving settlement, persons charging back or obtaining refund, and persons involved in insolvency and preference scenarios. No specific exemptions or penalties are mentioned in these documents. This legal document, governed by the Mississippi Code 1972, specifically the Uniform Commercial CodeBank Deposits and Collections, addresses the responsibility of payor banks for the late return of items. It outlines the actions that a payor bank can take to revoke a settlement for a demand item, such as returning the item, returning an image of the item if agreed upon, or sending a record providing notice of dishonor or nonpayment if the item is unavailable for return. 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 the specified time limit. The time of dishonor is determined when the item is returned or notice is sent in accordance with the section. The document further explains the process of returning an item, depending on whether it was presented through a clearinghouse or in other cases. Overall, this document provides guidelines for payor banks regarding the recovery of payment and the return of items in various scenarios. These legal documents, governed by the Mississippi Code 1972, specifically the Uniform Commercial CodeBank Deposits and Collections, cover various aspects of the relationship between payor banks and their customers. They provide guidelines for charging a customer’s account for properly payable items, including overdrafts, as long as the customer has authorized the item and it is in accordance with any agreement between the customer and the bank. The documents also address the liability of payor banks for wrongful dishonor of an item, stating that a bank may dishonor an item that would create an overdraft unless it has agreed to pay the overdraft. The bank is liable to its customer for damages caused by the wrongful dishonor. Customers have the right to stop payment on any item drawn on their account or close the account by providing an order to the bank. The documents establish the requirements for a valid stop-payment order and the time limits for its effectiveness. The documents also specify the time limit for a bank’s obligation to pay a check and the conditions under which it can charge the customer’s account for payment made after the six-month period. In cases of death or incompetence of a customer, the documents outline the authority of payor or collecting banks and the period during which they can still pay or certify checks. Bank customers have a duty to promptly discover and report unauthorized signatures or alterations on their accounts, and failure to comply may affect the bank’s liability. The documents also address the payor bank’s right to subrogation in cases of improper payment, allowing the bank to be subrogated to the rights of any holder in due course on the item. Overall, these documents provide comprehensive guidelines and regulations for the relationship between payor banks and their customers, ensuring transparency and accountability in banking transactions. This legal document, governed by the Mississippi Code 1972, falls under the Regulation of Trade, Commerce and Investments and the Uniform Commercial CodeBank Deposits and Collections. It governs the obligations of a bank that takes a documentary draft for collection, requiring the bank to present or send the draft and accompanying documents for presentment. The bank must promptly notify its customer if the draft has not been paid or accepted in due course, even if the bank has discounted or bought the draft or extended credit available for withdrawal. The document also governs the presentment of ‘on arrival’ drafts, stating that the collecting bank is not required to present the draft until a reasonable time for the arrival of the goods has expired. Refusal to pay or accept the draft due to non-arrival of goods is not considered dishonor. The bank must notify its transferor of the refusal but is not obligated to present the draft again until instructed to do so or learns of the arrival of the goods. Furthermore, the document governs the responsibility of a presenting bank when dealing with documents and goods related to a documentary draft. The presenting bank is required to deliver the documents to the drawee upon acceptance of the draft if it is payable more than three days after presentment, or upon payment if it is payable within three days. In case of dishonor, the presenting bank may seek instructions from any referee designated in the draft or, if it chooses not to utilize the referee’s services, it must diligently ascertain the reason for dishonor, notify its transferor of the dishonor and the results of its effort to ascertain the reasons, and request instructions. The presenting bank has no obligation regarding the goods represented by the documents, except to follow any reasonable instructions received. It is entitled to reimbursement for expenses incurred in following instructions and may request prepayment or indemnity for those expenses. Lastly, the document pertains to the privilege of a presenting bank to deal with goods and the security interest it holds for expenses. If a presenting bank requests instructions after the dishonor of a documentary draft but does not receive them within a reasonable time, it may store, sell, or otherwise deal with the goods in a reasonable manner. The presenting bank also has a lien on the goods or their proceeds for the reasonable expenses incurred in taking action. This lien can be foreclosed in the same manner as an unpaid seller’s lien. The document provides historical references and cross-references to related sections of the law, but does not mention any specific penalties or exemptions.
Whom does it apply to?
Banks, collecting banks, owners of items, payor banks, customers initiating collection, transferors, prior parties, depositary banks, drawees, warrantors, persons receiving settlement, persons encoding information, persons retaining items, persons with security interest, persons transferring items and receiving settlement or other consideration, persons presenting items, persons receiving settlement, persons charging back or obtaining refund, and persons involved in insolvency and preference scenarios
What does it govern?
Regulations and definitions related to bank deposits and collections
What are exemptions?
No specific exemptions are mentioned in these documents.
What are the Penalties?
No specific penalties are mentioned in these documents.
Jurisdiction
Mississippi