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Can you summarize NVRS 104.4214?
Uniform Commercial CodeOriginal Articles > Right of charge-back or refund; liability of collecting bank; return of item.
Short Summary
This legal document, part of the Nevada Revised Statutes under the Uniform Commercial CodeOriginal Articles, governs the right of charge-back or refund, as well as 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 a final settlement for the item due to dishonor, suspension of payments by a bank, or other reasons, the bank may revoke the settlement, charge back the amount credited to the customer’s account, or obtain a refund from the customer. The bank must return the item or send notification of the facts within its midnight deadline or within a reasonable time after learning the facts. If the return or notice is delayed, the bank may still revoke the settlement, charge back the credit, or obtain a refund, but it will be liable for any loss resulting from the delay. The right to revoke, charge back, or obtain a refund terminates when a settlement for the item is received by the bank. The document also specifies that a depositary bank that is also the payor may charge back the amount of an item to its customer’s account or obtain a refund. The right to charge back is not affected by previous use of the 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 the value 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
Nevada