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Can you summarize MORS Chapter 400, Article 4?
Uniform Commercial Code > BANK DEPOSITS AND COLLECTIONS
Short Summary
These legal documents, part of the Revised Statutes of Missouri under the Uniform Commercial Code, govern various aspects of bank deposits and collections. They provide definitions and general provisions related to key terms such as ‘bank’, ‘depositary bank’, ‘payor bank’, ‘intermediary bank’, ‘collecting bank’, and ‘presenting bank’. The documents establish a common understanding of these terms and aim to provide clarity and uniformity in the interpretation and application of the Uniform Commercial Code in relation to bank deposits and collections. The documents also govern the security interest of a collecting bank in items, accompanying documents, and proceeds. They specify that a collecting bank has a security interest in an item and its proceeds in various scenarios, such as when credit given for the item has been withdrawn or applied, or when the bank makes an advance on or against the item. The security interest remains on all items and their proceeds if credit given for several items received at one time or pursuant to a single agreement is withdrawn or applied in part. The documents also govern the rights and responsibilities of payor banks in relation to accepting, certifying, and paying items, as well as charging the customer’s account. They state that once a payor bank has accepted or certified an item, paid it in cash, settled for the item without the right to revoke the settlement, become accountable for the amount of the item, or if a cutoff hour has passed, any knowledge, notice, or stop-payment order received by the bank comes too late to terminate, suspend, or modify the bank’s right or duty to pay the item or charge the customer’s account. The documents further outline the circumstances under which a bank may charge a customer’s account, including when an item is properly payable and authorized by the customer. They also discuss the bank’s ability to charge a check that is otherwise properly payable, even if payment was made before the date of the check, unless the customer has given notice of postdating. Additionally, the documents govern the responsibility of a bank presenting a documentary draft. They specify that unless otherwise instructed, a bank presenting a documentary draft must deliver the documents to the drawee upon acceptance of the draft if it is payable more than three days after presentment. If the draft is payable sooner, the bank must deliver the documents only upon payment. The presenting bank may seek and follow instructions from any referee in case of dishonor, and if it chooses not to utilize the referee’s services, it must diligently and in good faith ascertain the reason for dishonor, notify its transferor of the dishonor and the results of its effort to ascertain the reasons, and request instructions. The presenting bank has no obligation regarding the goods represented by the documents, except to follow any reasonable instructions received. These documents provide guidelines and provisions for parties involved in bank deposits and collections, ensuring clarity and uniformity in their operations.
Whom does it apply to?
Parties involved in bank deposits and collections, including banks, depositary banks, payor banks, intermediary banks, collecting banks, and presenting banks
What does it govern?
Bank Deposits and Collections under the Uniform Commercial Code
What are exemptions?
No specific exemptions are mentioned in these documents
What are the Penalties?
No specific penalties are mentioned in these documents
Jurisdiction
Missouri