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Can you summarize 9A VTST 4-301?
BANK DEPOSITS AND COLLECTIONS > 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 Vermont Statutes Uniform Commercial Code, specifically addresses the actions and responsibilities of payor banks in relation to demand items. It states that if a payor bank settles for a demand item other than a documentary draft presented for immediate payment before midnight of the banking day of receipt, it has the right to revoke the settlement and recover the settlement amount. This can be done by either returning the item or sending written notice of dishonor or nonpayment if the item is unavailable for return. The payor bank also has the authority to return a demand item received for credit on its books or send notice of dishonor within a specified time limit. The document further clarifies that an item is considered dishonored at the time it is returned or notice is sent. The process of returning an item depends on whether it was presented through a clearing house or not. This legal document does not mention any specific 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
Vermont