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Can you summarize ARCO 4-4-215?
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 Arkansas Code under the Uniform Commercial Code, pertains to the final payment of items by payor banks, provisional settlements, and the availability of funds for withdrawal. It outlines the conditions under which an item is considered finally paid by a payor bank, including payment in cash, settlement without the right to revoke, or failure to revoke a provisional settlement within the permitted time. It also explains that if provisional settlement does not become final, the item is not considered finally paid. The document further discusses the finality of provisional debits or credits entered in accounts between presenting and payor banks or between presenting and successive prior collecting banks. It states 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. Additionally, the document addresses the availability of funds for withdrawal, specifying the circumstances under which credit given by a bank for an item in a customer’s account becomes available for withdrawal. It also mentions the availability of deposits of money for withdrawal. The document does not mention any specific exemptions or penalties.
Whom does it apply to?
Payor banks, presenting banks, successive prior collecting banks, collecting banks, customers
What does it govern?
Final payment of items by payor banks, provisional settlements, availability of funds for withdrawal
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Arkansas