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Can you summarize OHRC Section 1304.25?
Bank Deposits And Collections > Final payment of item by payor bank - when provisional debits and credits become final - when certain credits become available for withdrawal - UCC 4-215.
Short Summary
This legal document, governed by UCC 4-215, establishes the criteria for when an item is considered finally paid by a payor bank. It states that an item is finally paid when the payor bank has paid the item in cash, settled for the item without the right to revoke the settlement, or made a provisional settlement for the item and failed to revoke it within the permitted time and manner. If a provisional settlement does not become final, the item is not considered finally paid. Provisional debits or credits for the item between presenting and payor banks become final upon final payment of the item by the payor bank. If a collecting bank receives a settlement for an item that is or becomes final, it is accountable to its customer for the amount of the item, and any provisional credit given for the item becomes final. The document also specifies the times at which credits given by a bank for an item in a customer’s account become available for withdrawal, as well as the availability of funds for deposits. The document does not mention any specific exemptions or penalties.
Whom does it apply to?
Payor banks, presenting banks, successive prior collecting banks, and collecting banks
What does it govern?
Final payment of item by payor bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Ohio