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Can you summarize NYCL UCC Article 4?
Uniform Commercial Code > Bank Deposits and Collections
Short Summary
The provided legal document content covers various aspects related to the relationship between payor banks and their customers. It outlines the duty of customers to discover and report unauthorized signatures or alterations on bank statements and items. The document also addresses the authority of payor or collecting banks to accept, pay, or collect items, even in the presence of incompetence or death of a customer, unless the bank has knowledge of such circumstances. It further discusses the customer’s right to stop payment on items and the burden of proof of loss in such cases. The document also mentions the liability of payor banks for wrongful dishonor of an item and the bank’s ability to charge against the customer’s account for properly payable items, even if it creates an overdraft. Additionally, it addresses the liability of the bank for payment made on altered or completed items, unless the bank has notice that the completion was improper. This legal document, part of the Consolidated Laws of New York, specifically falls under the Uniform Commercial Code and governs the general provisions and definitions related to bank deposits and collections. It provides definitions for various terms used in this context, such as ‘account’, ‘banking day’, ‘item’, ‘customer’, ‘remitter’, and more. The document also includes definitions from other sections and articles that apply to this particular article. It does not mention any specific exemptions or penalties. Overall, this document serves as a reference for understanding the key terms and concepts related to bank deposits and collections in the state of New York. This legal document, part of the Consolidated Laws of New York, specifically the Uniform Commercial Code, governs the collection of items by payor banks. It outlines the actions and procedures that payor banks must follow when dealing with items, such as accepting, certifying, paying, or charging them to the customer’s account. The document states that any knowledge, notice, stop-order, or legal process received by the payor bank does not affect the bank’s right or duty to pay an item or charge the customer’s account if certain actions have already been taken by the bank. The document also allows the bank to accept, pay, certify, or charge items to the customer’s account in any convenient order. It specifies the conditions under which a payor bank can revoke a settlement and recover any payment for authorized settlement of demand items. The document also provides guidelines for returning items or sending notice of dishonor or nonpayment. Overall, this document establishes the procedures and actions that payor banks must follow when handling and processing demand items. This legal document governs the handling of items in the possession of payor or collecting banks in cases of insolvency and preference. It establishes the obligations of the receiver, trustee, or agent in charge of a closed bank to return unpaid items to the presenting bank or the closed bank’s customer. It also outlines the preferred claims of the owner of an item against a payor bank or collecting bank if they suspend payment without settling with their customer or the presenting bank. The document clarifies that the suspension of payments does not prevent the settlement from becoming final under certain conditions. It further governs the warranties and responsibilities of customers and collecting banks in relation to the transfer or presentment of items, as well as the time for making claims. The document also covers the media of remittance and the provisional and final settlement in remittance cases. It specifies the responsibilities of collecting banks in the collection of items and the right of charge-back or refund in banking transactions. Additionally, it governs the security interest of a bank in items, accompanying documents, and proceeds. The document also addresses the presumption and duration of agency status of collecting banks and the provisional status of credits. Overall, this document applies to various parties involved in the collection of items, including closed banks, presenting banks, payor banks, collecting banks, and their customers.
Whom does it apply to?
Banks presenting a documentary draft, customers of payor banks, payor or collecting banks, receiver, trustee, or agent in charge of a closed bank, owner of an item against a payor bank or collecting bank
What does it govern?
Responsibility of a presenting bank for documents and goods, report of reasons for dishonor, role of a referee in case of need, duty of customers to discover and report unauthorized signatures or alterations on bank statements and items, authority of payor or collecting banks to accept, pay, or collect items, customer's right to stop payment on items, liability of payor banks for wrongful dishonor of an item, liability of the bank for payment made on altered or completed items, general provisions and definitions related to bank deposits and collections, actions and procedures that payor banks must follow when dealing with items, handling of items in the possession of payor or collecting banks in cases of insolvency and preference, warranties and responsibilities of customers and collecting banks in relation to the transfer or presentment of items, media of remittance, provisional and final settlement in remittance cases, security interest of a bank in items, accompanying documents, and proceeds, presumption and duration of agency status of collecting banks, provisional status of credits
What are exemptions?
No specific exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New York