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Can you summarize IACO 554.4301?
UNIFORM COMMERCIAL CODE > 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 Iowa Code’s Uniform Commercial Code, governs the rules and procedures related to deferred posting, recovery of payment by return of items, time of dishonor, and return of items by payor banks. It applies specifically to payor banks. According to the document, if a payor settles for a demand item other than a documentary draft presented for immediate payment before midnight of the banking day of receipt, the payor bank may revoke the settlement and recover the payment settlement by returning the item or sending written notice of dishonor or nonpayment. The document also specifies that an item is considered dishonored at the time when it is returned or notice is sent. The process of returning an item depends on whether it was presented through a clearing house or not. No penalties or exemptions are mentioned in this document.
Whom does it apply to?
Payor banks
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
Iowa