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Can you summarize IC 26-1-4-301?
Bank Deposits and Collections > Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank
Short Summary
This section of the Indiana Code, specifically under the Commercial Law and Uniform Commercial Code, governs the settlement and recovery of payments by payor banks. It outlines the conditions under which a payor bank can revoke a settlement and recover the payment. The payor bank can do so by returning the item, returning an image of the item if agreed upon, or sending a notice of dishonor or nonpayment if the item is unavailable for return. Additionally, if a demand item is received by a payor bank for credit, it can return the item or send a notice of dishonor within a specified time limit. The section also clarifies the time of dishonor for an item and the methods of returning the item. Overall, this section provides guidelines for the return of items and the recovery of payments in the context of bank deposits and collections.
Whom does it apply to?
Payor banks, parties involved in settlement and recovery of payments, and customers of payor banks
What does it govern?
Bank Deposits and Collections
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Indiana