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Can you summarize NHRS 382-A:4-214?
UNIFORM COMMERCIAL CODE > Right of Charge-Back or Refund; Liability of Collecting Bank; Return of Item.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, governs the right of charge-back or refund, the liability of collecting banks, and the return of items. It applies to collecting banks and their customers. According to the document, if a collecting bank has made provisional settlement with its customer for an item but fails to receive final settlement due to dishonor, suspension of payments by a bank, or other reasons, the bank has the right to revoke the settlement, charge back the credited amount, or obtain a refund from its customer. The bank must return the item or send notification of the facts within its midnight deadline or a reasonable time after learning the facts. If the return or notice is delayed, the bank may still exercise its rights but is liable for any resulting loss. The right to charge back, revoke settlement, or obtain a refund terminates when a settlement for the item is received by the bank. The document also mentions the process of returning an item and the rights of a depositary bank that is also the payor. It clarifies that the right to charge back is not affected by previous use of a credit given for the item or failure by any bank to exercise ordinary care. Failure to charge back or claim a refund does not affect other rights of the bank against the customer or any other party. Additionally, if credit is given in dollars as the equivalent of an item payable in foreign money, the dollar amount of any charge-back or refund must be calculated based on the bank-offered spot rate for the foreign money prevailing on the day when the person entitled to the charge-back or refund learns that payment will not be received in the ordinary course.
Whom does it apply to?
Collecting banks and their customers
What does it govern?
Right of Charge-Back or Refund; Liability of Collecting Bank; Return of Item
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire