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Can you summarize MGL Chapter 106, Article 4, Section 4-213?
BANK DEPOSITS AND COLLECTIONS > Medium and Time of Settlement by Bank
Short Summary
This section of the Massachusetts General Law governs the medium and time of settlement by a bank. The medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearinghouse rules, or agreement. In the absence of such prescription, the medium of settlement is cash or credit to an account in a Federal Reserve bank or specified by the person to receive settlement. The time of settlement varies depending on the method of tender, such as cash, cashier’s check, teller’s check, credit in a Federal Reserve bank account, credit or debit to a bank account, or funds transfer. If the tender of settlement is not by an authorized medium or the time of settlement is not fixed, no settlement occurs until the tender of settlement is accepted by the person receiving settlement. Settlement for an item made by cashier’s check or teller’s check is considered final when the check is finally paid or at the midnight deadline of the person receiving settlement if the check is not presented for collection. Settlement for an item made by giving authority to charge the account of the bank receiving settlement is considered final when the charge is made if there are sufficient funds available in the account.
Whom does it apply to?
Banks and persons involved in settlement transactions
What does it govern?
Medium and time of settlement by a bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Massachusetts