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Can you summarize MNST 336.4-216?
UNIFORM COMMERCIAL CODE > INSOLVENCY AND PREFERENCE.
Short Summary
This legal document, found in the Minnesota Statutes under the Trade Regulations and Consumer Protection section of the Uniform Commercial Code, governs the rules related to insolvency and preference. It outlines various scenarios and obligations for payor banks, collecting banks, receivers, trustees, agents in charge of closed banks, and owners of items. The document states that if an item is in the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, it must be returned to the presenting bank or the closed bank’s customer. It also establishes that if a payor bank finally pays an item and suspends payments without settling with its customer or the presenting bank, the owner of the item has a preferred claim against the payor bank. Similarly, if a collecting bank receives settlement for an item from subsequent parties and suspends payments without making a settlement with its customer, the owner of the item has a preferred claim against the collecting bank. The document does not mention any specific exemptions or penalties.
Whom does it apply to?
Payor banks, collecting banks, receivers, trustees, agents in charge of closed banks, and owners of items
What does it govern?
Insolvency and preference
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota