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Can you summarize MICL 440.4215?
PART 2 COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS (440.4201...440.4216) > Final payment of items by payor bank; final credit; availability of credit for withdrawal.
Short Summary
This section of the Michigan Compiled Laws, specifically under the Uniform Commercial Code, Article 4 Bank Deposits and Collections, Part 2 Collection of Items: Depositary and Collecting Banks, governs the final payment of items by a payor bank, final credit, and the availability of credit for withdrawal. It outlines the conditions under which an item is considered finally paid by a payor bank, including payment in cash, settlement without the right to revoke, or provisional settlement that is not revoked within the permitted time. It also explains that if provisional settlement does not become final, the item is not considered finally paid. The section further discusses the finality of provisional debits or credits entered in accounts between presenting and payor banks or between presenting and prior collecting banks. Additionally, it 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 becomes final. The section also addresses the availability of credit for withdrawal, stating that credit becomes available if the bank has received a provisional settlement for the item and a reasonable time has passed without receiving the item, or if the bank is both the depositary and payor bank and the item is finally paid. Finally, it mentions that deposits of money become available for withdrawal at the opening of the bank’s next banking day after receipt. No specific exemptions or penalties are mentioned in this section.
Whom does it apply to?
Payor banks, presenting banks, collecting banks, and customers
What does it govern?
Final payment of items by payor bank; final credit; availability of credit for withdrawal
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Michigan