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Can you summarize MORS 400.4-301?
Collection of Items Payor Banks > Deferred posting recovery of payment by return of items time of dishonor return of items by payor bank.
Short Summary
This legal document governs the actions and responsibilities of payor banks in the collection of items. It outlines the conditions under which a payor bank can settle for a demand item and the rights of the payor bank to revoke the settlement and recover the payment. The document specifies that if a payor bank settles for a demand item before midnight of the banking day of receipt, it can revoke the settlement and recover the payment by returning the item or sending written notice of dishonor or nonpayment. Additionally, if a demand item is received by a payor bank for credit on its books, it can return the item or send notice of dishonor within a specified time limit. The document also clarifies that an item is considered dishonored at the time it is returned or notice is sent. The process of returning an item depends on whether it was presented through a clearing house or not. Overall, this document provides guidelines for payor banks in handling the collection of items and the actions they can take in case of dishonor or nonpayment.
Whom does it apply to?
Payor banks
What does it govern?
Collection of Items Payor Banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Missouri