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Can you summarize MGL Chapter 106, Article 4, Section 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 Massachusetts General Law, specifically under the Uniform Commercial Code for Bank Deposits and Collections, governs the procedures and actions related to deferred posting, recovery of payment by return of items, time of dishonor, and return of items by payor banks. It outlines the conditions under which a payor bank can revoke a settlement and recover the settlement amount before making final payment, including returning the item or sending written notice of dishonor or nonpayment. The section also allows a payor bank to return a demand item received for credit on its books or send notice of dishonor within a specified time limit. It clarifies that an item is considered dishonored when it is returned or notice is sent. The section further specifies the methods of returning an item, depending on whether it was presented through a clearinghouse or in other cases. The section applies to payor banks and their customers, providing guidelines for handling and returning items in various scenarios.
Whom does it apply to?
Payor banks and their customers
What does it govern?
Deferred Posting; Recovery of Payment by Return of Items; Time of Dishonor; Return of Items by Payor Bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Massachusetts