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Can you summarize HIRS 490:4-215?
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 Hawaii Revised Statutes under the Uniform Commercial Code, pertains to the final payment of items by payor banks and the conditions under which provisional debits and credits become final. It also addresses when certain credits become available for withdrawal. The document outlines that an item is finally paid by a payor bank when it is paid in cash, settled without the right to revoke the settlement, or when a provisional settlement is made and not revoked within the permitted time. If provisional settlement does not become final, the item is not considered finally paid. Provisional debits or credits for an item become final upon final payment of the item by the payor bank. If a collecting bank receives a settlement for an item that becomes final, it is accountable to its customer for the amount of the item, and any provisional credit given becomes final. The document also specifies the availability of funds for withdrawal based on provisional settlement and the bank’s role as both the depositary and payor bank. It further mentions the requirement for depositary banks to provide written notice of their check hold policy and fund availability. Overall, the document establishes guidelines for the final payment of items and the availability of credits for withdrawal in the context of bank deposits and collections.
Whom does it apply to?
Payor banks, presenting banks, successive prior collecting banks, and 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
Hawaii