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Can you summarize MDCM Com. Law Section 4-215?
Short Summary
This legal document, found in the Code of Maryland under Commercial Law, Title 4, SubTitle 2, governs the final payment of items by payor banks. It outlines the various actions that constitute final payment, such as paying the item in cash, settling for the item without the right to revoke the settlement, or making a provisional settlement and failing to revoke it within the permitted time. The document also clarifies that if provisional settlement does not become final, the item is not considered finally paid. Additionally, it explains that if provisional settlement is made through a clearing house or by debits or credits between banks, the provisional debits or credits become final upon final payment of the item by the payor bank. The document further states that if a collecting bank receives a settlement for an item that becomes final, the bank is accountable to its customer for the amount of the item, and any provisional credit given for the item becomes final. It also provides guidelines for the availability of funds and withdrawal rights for customers based on provisional settlement and the bank’s role as both the depositary bank and the payor bank. Overall, this document establishes the rules and procedures for the payment and settlement of items by payor banks.
Whom does it apply to?
Payor banks, presenting banks, successive prior collecting banks, and collecting banks
What does it govern?
Payment and settlement of items by payor banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Maryland