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Can you summarize MDCM Com. Law Section 4-213?
Short Summary
This legal document governs the settlement of transactions by banks. It outlines the medium and time of settlement, which may be prescribed by Federal Reserve regulations, clearing-house rules, or agreements. In the absence of such prescription, the medium of settlement is cash or credit to an account in a Federal Reserve bank, and the time of settlement varies depending on the method of tender. The document specifies the time of settlement for different forms of tender, including cash, checks, credits or debits to accounts, and funds transfers. If the tender of settlement is not made through an authorized medium or the time of settlement is not fixed, settlement occurs only when the tender is accepted by the person receiving settlement. The document also provides rules for settlement by cashier’s check or teller’s check, and settlement by giving authority to charge an account. It clarifies when settlement is considered final in these cases. Overall, this document establishes the guidelines for settlement transactions between banks and the parties involved.
Whom does it apply to?
Banks and persons involved in settlement transactions
What does it govern?
Settlement of transactions by banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Maryland