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Can you summarize OHRC Section 1304.27?
Bank Deposits And Collections > Deferred posting - recovery of payment by return of items - time of dishonor - return of items by payor bank - UCC 4-301.
Short Summary
This legal document, governed by UCC 4-301, pertains to payor banks and their actions regarding the settlement and recovery of payment for demand items. If a payor bank settles for a demand item before midnight of the banking day of receipt, it has the option to revoke the settlement and recover the settlement amount under certain conditions. The payor bank can revoke the settlement and recover the payment by returning the item, returning an image of the item if agreed upon, or sending a notice of dishonor or nonpayment if the item is unavailable for return. Additionally, if a demand item is received by a payor bank for credit on its books, it may return the item or send notice of dishonor within the specified time limit. The dishonor of an item occurs when it is returned or notice is sent in accordance with this section. The document also specifies the times at which an item is considered returned based on different scenarios. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Payor banks
What does it govern?
Deferred posting - recovery of payment by return of items - time of dishonor - return of items by payor bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Ohio