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Can you summarize IDST 28-4-301?
COLLECTION OF ITEMS PAYOR BANKS > DEFERRED POSTING RECOVERY OF PAYMENT BY RETURN OF ITEMS TIME OF DISHONOR RETURN OF ITEMS BY PAYOR BANK.
Short Summary
This legal document governs the collection of items by payor banks. It outlines the actions a payor bank can take if it settles for a demand item and later wants to revoke the settlement. The payor bank can revoke the settlement and recover the payment if it returns the item or sends written notice of dishonor or nonpayment before making final payment and before its midnight deadline. Additionally, if a demand item is received by a payor bank for credit on its books, it can return the item or send notice of dishonor within the specified time limit. The document also clarifies that an item is considered dishonored when it is returned or notice is sent. The specific methods of returning an item are outlined, including delivery to the presenting or last collecting bank, the clearing house, the bank’s customer, or the transferor. Overall, this document provides guidelines for payor banks regarding the recovery of payment and the return of items in various scenarios.
Whom does it apply to?
Payor banks
What does it govern?
Collection of items by payor banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Idaho