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Can you summarize NYCL UCC 4-301?
Collection of Items: Payor Banks > Deferred Posting; Recovery of Payment by Return of Items; Time of Dishonor
Short Summary
This legal document governs the procedures and actions related to deferred posting, recovery of payment by return of items, and the time of dishonor in the context of payor banks. It outlines the conditions under which a payor bank can revoke a settlement and recover any payment for authorized settlement of demand items. The document specifies that the payor bank can return the item or send written notice of dishonor or nonpayment if the item is held for protest or is otherwise unavailable for return. Additionally, it allows the payor bank to return a demand item received for credit on its books or send notice of dishonor within a specified time limit. The document also clarifies that an item is considered dishonored at the time it is returned or notice is sent. The procedures for returning items differ depending on whether the item was received through a clearing house or not. Overall, this document provides guidelines for payor banks to handle and process demand items in accordance with the specified procedures.
Whom does it apply to?
Payor banks
What does it govern?
Deferred Posting; Recovery of Payment by Return of Items; Time of Dishonor
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New York