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Can you summarize MNST 336.4-213?
UNIFORM COMMERCIAL CODE > MEDIUM AND TIME OF SETTLEMENT BY BANK.
Short Summary
This legal provision, found in the Minnesota Statutes under the Uniform Commercial Code, governs the medium and time of settlement by a bank. The medium and time of settlement may be prescribed by Federal Reserve regulations, circulars, clearinghouse rules, or agreements. 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 receiving settlement. The time of settlement varies depending on the method of tender, such as cash, 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 specifies the finality of settlement for items made by cashier’s check, teller’s check, or 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?
Medium and time of settlement by a bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota