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Can you summarize ALCA 7-4-215?
Collection of Items: Depositary and Collecting Banks. > Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal.
Short Summary
This legal document, part of the Code of Alabama’s Commercial Code on Bank Deposits and Collections, governs the final payment of items by payor banks, the timing of when provisional debits and credits become final, and when certain credits become available for withdrawal. It establishes 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 when a provisional settlement is made and not revoked within the permitted time. If provisional settlement does not become final, the item is not considered finally paid. Provisional debits or credits for an item become final upon final payment of the item by the payor bank. If a collecting bank receives a settlement for an item that becomes final, it is accountable to its customer for the amount of the item, and any provisional credit given becomes final. The document also outlines the availability of funds for withdrawal, based on provisional settlement becoming final and the bank’s reasonable time to receive the item. Additionally, it specifies the availability of funds for withdrawal in the case of a deposit of money. 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?
Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal.
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Alabama