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Can you summarize ARCO 4-4-301?
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 procedures and requirements related to deferred posting, recovery of payment by return of items, time of dishonor, and return of items by payor banks. It applies specifically to payor banks. The document outlines the conditions under which a payor bank can settle for a demand item and the actions it can take to revoke the settlement and recover the payment. It also specifies the time limits and methods for returning items or sending notice of dishonor. The document further clarifies that an item is considered dishonored when it is returned or notice is sent in accordance with the provided guidelines. The document provides instructions for returning items presented through a clearinghouse and in other cases. No exemptions or penalties are mentioned in this document.
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
Arkansas