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Can you summarize NJST 12A:4-213?
Medium and time of settlement by bank
Short Summary
This legal document governs the medium and time of settlement by a bank. It applies to banks and persons involved in settlement transactions. The document states that the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearing-house rules, or agreement. In the absence of such prescription, the medium of settlement is cash or credit to an account in a Federal Reserve bank or specified by the person to receive settlement. The time of settlement varies depending on the method of tender, such as cash, cashier’s check, teller’s check, credit or debit to an account, or funds transfer. If the tender of settlement is not authorized or the time of settlement is not fixed, no settlement occurs until the tender of settlement is accepted by the person receiving settlement. The document also specifies the finality of settlement for items made by cashier’s check, teller’s check, or authority to charge an account. No penalties are mentioned in this document.
Whom does it apply to?
Banks and persons involved in settlement transactions
What does it govern?
Medium and time of settlement by a bank
What are exemptions?
None mentioned
What are the Penalties?
None mentioned
Jurisdiction
New Jersey