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Can you summarize IC 26-1-4-215?
Bank Deposits and Collections > Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal
Short Summary
This section of the Indiana Code, specifically under the Commercial Law and Uniform Commercial Code, governs the final payment of items by payor banks, the timing at which provisional debits and credits become final, and the availability of certain credits for withdrawal. It 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. The section also explains that provisional debits or credits for an item become final upon final payment of the item by the payor bank. Additionally, it states that credits given by a bank for an item in a customer’s account become available for withdrawal when the settlement becomes final and the bank has had a reasonable time to receive the item, or at the opening of the bank’s second banking day following receipt of the item if the bank is both the depositary and payor bank. Deposits of money become available for withdrawal at the opening of the bank’s next banking day after receipt. No specific exemptions or penalties are mentioned in this section.
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
Indiana