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Can you summarize RIGL 6A-4-215?
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.
Short Summary
This section of the State of Rhode Island General Laws, specifically the Uniform Commercial Code under the Bank Deposits and Collections section, pertains to the final payment of items by payor banks, the process by which provisional debits and credits become final, and the availability of credits for withdrawal. It outlines that an item is finally paid by a payor bank when it is paid in cash, settled without the right to revoke the settlement, or when a provisional settlement is made and not revoked within the permitted time. If provisional settlement does not become final, the item is not considered finally paid. 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 is accountable to its customer for the amount of the item, and any provisional credit given becomes final. Credit given by a bank for an item in a customer’s account becomes available for withdrawal when the settlement becomes final and the bank has had a reasonable time to receive the item, but it has not been received within that time. Additionally, deposits of money become available for withdrawal at the opening of the bank’s next banking day after receipt. No specific exemptions or penalties are mentioned in this section.
Whom does it apply to?
Payor banks, presenting banks, successive prior collecting banks, collecting banks, customers
What does it govern?
Final payment of item by payor bank, 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
Rhode Island