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Can you summarize AKST 45.04.301?
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 governs the collection of items by payor banks. It outlines the procedures and actions that payor banks can take in relation to demand items. If a payor bank settles for a demand item other than a documentary draft presented before midnight of the banking day of receipt, it has the option to revoke the settlement and recover the settlement amount. This can be done by returning the item or sending written notice of dishonor or nonpayment if the item is unavailable for return. The document also specifies 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 a specified time limit. The dishonor of an item occurs when it is returned or notice is sent. The document provides details on when an item is considered returned, depending on whether it was presented through a clearinghouse or not. Overall, this document establishes the procedures and timelines for payor banks in handling and returning items in the collection process.
Whom does it apply to?
Payor banks
What does it govern?
Collection of Items: Payor Banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Alaska