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Can you summarize MICL 440.4213?
PART 2 COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS (440.4201...440.4216) > Settlement; medium and time.
Short Summary
This legal provision, found in the Michigan Compiled Laws under the Uniform Commercial Code, specifically Article 4 - Bank Deposits and Collections, Part 2 - Collection of Items: Depositary and Collecting Banks, governs the medium and time of settlement by a bank. The settlement medium and time may be prescribed by Federal Reserve regulations, circulars, clearing-house rules, agreements, or in the absence of such prescription, the following rules apply. The medium of settlement is either cash or credit to an account in a Federal Reserve bank or as specified by the person receiving 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 authorized or the time of settlement is not fixed, no settlement occurs until the tender is accepted by the person receiving settlement. Additionally, the provision outlines the finality of settlement for items made by cashier’s check, teller’s check, or giving authority to charge an account. No penalties are mentioned in this provision.
Whom does it apply to?
Banks and persons involved in settlement transactions
What does it govern?
Settlement by a bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Michigan