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Can you summarize IACO 554.4216?
UNIFORM COMMERCIAL CODE > Insolvency and preference.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, addresses the rules and provisions related to insolvency and preference. It outlines the obligations and responsibilities of various entities such as payor banks, collecting banks, receivers, trustees, agents in charge of closed banks, presenting banks, and closed bank’s customers. The document states that if an item is in the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, it must be returned to the presenting bank or the closed bank’s customer. It also establishes that if a payor bank finally pays an item and suspends payments without making a settlement with its customer or the presenting bank, the owner of the item has a preferred claim against the payor bank. Similarly, if a collecting bank receives settlement for an item from subsequent parties and suspends payments without making a settlement with its customer, the owner of the item has a preferred claim against the collecting bank. The document does not mention specific penalties for non-compliance or violations.
Whom does it apply to?
Payor banks, collecting banks, receivers, trustees, agents in charge of closed banks, presenting banks, closed bank's customers
What does it govern?
Insolvency and preference
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Iowa