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Can you summarize DCCO 28:4-301?
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, part of the Uniform Commercial Code, specifically addresses the actions and responsibilities of payor banks in relation to the settlement and return of demand items. It allows payor banks to revoke settlement and recover the settlement amount if certain conditions are met, such as returning the item or providing notice of dishonor or nonpayment. The document also establishes the time of dishonor and provides guidelines for returning items. It clarifies that an item is considered returned when it is delivered to the presenting or last collecting bank, the clearing house, the bank’s customer, or the transferor, as per instructions. The document does not mention any specific exemptions or penalties. Overall, it governs the procedures and obligations of payor banks in handling demand items and ensures proper settlement and return processes.
Whom does it apply to?
Payor banks and their customers
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
Washington, D.C.