Ask Reggi Your Question Now
Can you summarize Com Code CACL 4301?
Collection of Items: Payor Banks [4301. - 4303.] >
Short Summary
This legal document governs the collection of items by payor banks. It outlines the actions that a payor bank can take if it settles for a demand item other than a documentary draft presented for immediate payment. The payor bank has the option to revoke the settlement and recover the settlement by either returning the item or sending written notice of dishonor or nonpayment. 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on its books, it may return the item or send notice of dishonor and revoke any credit given or recover the amount withdrawn by its customer. The document also specifies the time and manner in which the payor bank can act. It further explains the process of dishonoring an item and the different scenarios in which an item can be returned. The document was amended in 1992 and is effective from January 1, 1993.
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
California