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Can you summarize NYCL UCC 4-213?
Collection of Items: Depositary and Collecting Banks > Final Payment of Item by Payor Bank; When Provisional Debits and Credits Become Final; When Certain Credits Become Available for Withdrawal
Short Summary
This legal document governs the final payment of items by payor banks, the point at which provisional debits and credits become final, and the availability of credits for withdrawal. It applies to payor banks, presenting banks, successive prior collecting banks, and collecting banks. An item is considered finally paid by a payor bank when it has paid the item in cash, settled for the item without reserving a right to revoke the settlement, completed the process of posting the item to the indicated account, or made a provisional settlement for the item and failed to revoke the settlement within the permitted time. Once there is a final payment, the payor bank becomes accountable for the amount of the item. Provisional debits or credits for an item become final when the payor bank makes the final payment. If a collecting bank receives a settlement for an item that becomes final, it becomes accountable to its customer for the amount of the item, and any provisional credit given for the item becomes final. Credit given by a bank for an item becomes available for withdrawal as of right when the provisional settlement becomes final and the bank has had a reasonable time to learn about it, or when the bank is both a depositary bank and a payor bank and the item is finally paid. A deposit of money in a bank becomes final when made and becomes available for withdrawal at the opening of the bank’s next banking day following receipt of the deposit.
Whom does it apply to?
Payor banks, presenting banks, successive prior collecting banks, and collecting banks
What does it govern?
Final payment of items by payor banks, provisional debits and credits becoming final, availability of credits for withdrawal
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New York