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Can you summarize SDCL 57A-4-301?
COLLECTION OF ITEMS: PAYOR BANKS. > Deferred posting--Recovery of payment by return of items--Time of dishonor--Return of items by payor bank.
Short Summary
This legal document governs the recovery of payment by return of items in the context of 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. 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 within a specified time limit. The document also clarifies the time of dishonor for an item and the methods of returning the item based on whether it was presented through a clearing house or not. Overall, this document provides guidelines for payor banks regarding the recovery of payment through the return of items.
Whom does it apply to?
Payor banks
What does it govern?
Recovery of payment by return of items
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
South Dakota