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Can you summarize RIGL 6A-4-301?
Bank Deposits and Collections > Deferred posting Recovery of payment by return of items Time of dishonor Return of items by payor bank.
Short Summary
This section of the State of Rhode Island General Laws, specifically the Uniform Commercial Code, pertains to payor banks and their responsibilities in the collection of items. It outlines the actions a payor bank can take if it settles for a demand item and later wishes to revoke the settlement. The payor bank has the option to return the item or send written 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. The section also clarifies that an item is considered dishonored at the time it is returned or notice is sent. The process of returning an item is defined differently depending on whether it was presented through a clearing house or not. This section provides the necessary guidelines for payor banks to follow in the collection of items.
Whom does it apply to?
Payor banks
What does it govern?
Collection of Items: Payor Banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Rhode Island