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Can you summarize 810 ILCS 5/4-215?
COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS >
Short Summary
This legal document, Section 4-215 of the Illinois Compiled Statutes, falls under the Uniform Commercial Code and specifically governs the final payment of items by payor banks, provisional debits and credits becoming final, and the availability of credits for withdrawal. It outlines that an item is finally paid by a payor bank when it is paid in cash, settled without the right to revoke the settlement, or provisionally settled and not revoked within the permitted time. If provisional settlement does not become final, the item is not considered finally paid. The document also states 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 items by the payor bank. Additionally, it clarifies that if a collecting bank receives a settlement for an item that becomes final, the bank is accountable to its customer for the amount of the item, and any provisional credit given becomes final. The document further specifies the availability of funds for withdrawal, based on provisional settlement becoming final and the reasonable time for return of the item. It also mentions the availability of a deposit of money for withdrawal at the opening of the bank’s next banking day after receipt. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Payor banks, presenting banks, successive prior collecting banks, and collecting banks
What does it govern?
Collection of items: depositary and collecting banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Illinois