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Can you summarize GACO 11-4-301?
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 collection of items by payor banks. It outlines the actions a payor bank can take if it settles for a demand item and later wants to revoke the settlement. The payor bank can revoke the settlement and recover the settlement amount if it returns the item or sends written notice of dishonor or nonpayment. Additionally, if a demand item is received by a payor bank for credit on its books, it can return the item or send notice of dishonor within a specified time limit. The document also clarifies when an item is considered dishonored and provides guidelines for returning items presented through a clearing-house or in other cases. The document references relevant sections of the Georgia Code and includes a judicial decision and research references for further context.
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
Georgia