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Can you summarize Tex. Bus. & Com. Section 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 collection of items by payor banks. It outlines the actions a payor bank can take if it settles for a demand item and later wants to revoke the settlement. The payor bank can revoke the settlement and recover the settlement amount if it returns the item, returns an image of the item (if agreed upon), or sends a record providing notice of dishonor or nonpayment. The document also specifies that 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 item is considered dishonored when it is returned or notice is sent. The document further explains the process of returning an item through a clearing house or in other cases. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Payor banks
What does it govern?
Collection of items by payor banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Texas