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Can you summarize MTCO 30-4-301?
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 collection of items by payor banks. It outlines the actions that a payor bank can take if it settles for a demand item and later wants to revoke the settlement. The payor bank has the option to return the item or send written notice of dishonor or nonpayment if the item is unavailable for return. Additionally, if a demand item is received by a payor bank for credit on its books, it may return the item or send notice of dishonor. The document specifies the time limits and procedures for these actions. It also clarifies that an item is considered dishonored when it is returned or notice is sent. The document provides specific instructions on how an item should be returned depending on whether it was presented through a clearinghouse or not. Overall, this document establishes the guidelines for payor banks regarding the recovery of payment and the return of items in case of dishonor.
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
Montana