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Can you summarize DCCO 28:4-215?
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 Uniform Commercial Code, governs the final payment of an item by a payor bank, the timing of when provisional debits and credits become final, and when certain credits become available for withdrawal. It defines when an item is finally paid by a payor bank, including payment in cash, settlement without the right to revoke, and failure to revoke a provisional settlement within the permitted time. It also clarifies that if provisional settlement for an item does not become final, the item is not finally paid. The document further explains that if provisional settlement is made through a clearing house or by debits or credits between banks, the provisional debits or credits become final upon final payment of the item by the payor bank. Additionally, 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. The document also outlines when credits given by a bank for an item in a customer’s account become available for withdrawal as of right, based on provisional settlement becoming final and the reasonable time for return of the item. Finally, it mentions the availability of funds for withdrawal from a deposit of money at the opening of the bank’s next banking day after receipt of the deposit.
Whom does it apply to?
Payor banks, presenting banks, collecting banks, and customers of 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
Washington, D.C.