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Can you summarize NJST 12A: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 actions and responsibilities of payor banks in relation to deferred posting, recovery of payment by return of items, time of dishonor, and return of items. It specifies that 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 settlement by returning the item or sending written notice of dishonor or nonpayment. The payor bank also has the right to return a demand item received for credit on its books or send notice of dishonor within the specified time limit. The document further clarifies that an item is considered dishonored when it is returned or when a notice of dishonor is sent. The process of returning an item depends on whether it was presented through a clearing house or not. No specific 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
New Jersey