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Can you summarize ARCO 4-4-213?
Collection of Items Depositary and Collecting Banks > Medium and time of settlement by bank.
Short Summary
This legal document governs the medium and time of settlement by a bank. It specifies that the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearinghouse rules, or agreement. In the absence of such prescription, the medium of settlement is cash or credit to an account in a Federal Reserve bank or specified by the person to receive settlement. The time of settlement varies depending on the method of tender, such as cash, credit in a Federal Reserve bank account, credit or debit to a bank account, or funds transfer. If the tender of settlement is not authorized or the time of settlement is not fixed, no settlement occurs until the tender of settlement is accepted by the person receiving settlement. The document also outlines the finality of settlement for items made by cashier’s check, teller’s check, or authority to charge an account. Overall, this document provides guidelines for settlement processes and timelines for banks and persons involved in settlement transactions.
Whom does it apply to?
Banks and persons involved in settlement transactions
What does it govern?
Settlement by a bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Arkansas