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Can you summarize NCGS 25-4-213?
Collection of Items: Depositary and Collecting Banks. > Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal.
Short Summary
This legal document, part of the North Carolina General Statutes Uniform Commercial Code, specifically addresses the final payment of items by payor banks, the process by which provisional debits and credits become final, and the availability of credits for withdrawal. It outlines that an item is considered finally paid by a payor bank when it is paid in cash, settled without the right to revoke the settlement, or when a provisional settlement is made and not revoked within the permitted time. If provisional settlement does not become final, the item is not considered finally paid. The document also explains that provisional debits or credits for an item become final upon final payment of the item by the payor bank. Additionally, it states that if a collecting bank receives a settlement for an item that becomes final, the bank is accountable to its customer for the amount of the item, and any provisional credit given becomes final. Furthermore, it specifies the conditions under which credits in a customer’s account become available for withdrawal. The document does not mention any specific exemptions or penalties.
Whom does it apply to?
Payor banks, presenting banks, successive prior collecting banks, and collecting banks
What does it govern?
Final payment of items by payor banks, provisional debits and credits becoming final, availability of credits for withdrawal
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
North Carolina