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Can you summarize NERS Uniform Commercial Code 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, part of the Nebraska Uniform Commercial Code, outlines the procedures and requirements for payor banks regarding the settlement, revocation, and recovery of payment for demand items. If a payor bank settles for a demand item other than a documentary draft presented before midnight of the banking day of receipt, it may revoke the settlement and recover the payment by returning the item or sending written notice of dishonor or nonpayment. The payor bank also has the option to return the item or send notice of dishonor if a demand item is received for credit on its books. The document specifies the time of dishonor and the methods of returning items. It also clarifies that an item is considered dishonored when it is returned or notice is sent. The document provides annotations related to the time limits and procedures for provisional settlement and dishonor. No specific penalties are mentioned in this document.
Whom does it apply to?
Payor banks and their customers.
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
Nebraska