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Can you summarize NDCC Section 41-04-29?
Bank Deposits and Collections > (4-301) 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 procedures and requirements related to deferred posting, recovery of payment by return of items, time of dishonor, and return of items by payor banks. It applies specifically to payor banks. According to the document, if a payor bank settles for a demand item other than a documentary draft presented for immediate payment before midnight of the banking day of receipt, it has the right to revoke the settlement and recover any settlement made before final payment and before its midnight deadline. The payor bank can do so by returning the item or sending written notice of dishonor or nonpayment if the item is unavailable for return. 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 within the specified time limit and in the specified manner. The document also clarifies that an item is considered dishonored at the time when it is returned or notice is sent. The specific methods of returning an item depend on whether it was presented through a clearinghouse or not. No exemptions or penalties are mentioned in this document.
Whom does it apply to?
Payor banks
What does it govern?
Deferred posting - Recovery of payment by return of items - Time of dishonor - Return of items by payor bank
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No penalties are mentioned
Jurisdiction
North Dakota