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Can you summarize SCCL 36-4-301?
Collection of Items: Payor Banks > Posting; recovery of payment by return of items; time of dishonor; return of items by payor bank.
Short Summary
This section of the South Carolina Code of Laws, specifically the Commercial Code - Bank Deposits and Collections, pertains to the collection of items by payor banks. It outlines the actions a payor bank can take if it settles for a demand item and later wishes to revoke the settlement and recover the payment. The payor bank has the option to return the item, return an image of the item if agreed upon, or send 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 can return the item or send notice of dishonor within a specified time limit. The section also clarifies the timing of dishonor and the methods of returning an item. Overall, this section provides guidelines for payor banks regarding the recovery of payment and the return of items in various scenarios.
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
South Carolina