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Can you summarize TNCO 47-4-215?
Collection of Items Depositary and Collecting Banks > Final payment of item by payor bank When provisional debits and credits become final When certain credits become available for withdrawal.
Short Summary
This legal document, part of the Tennessee Code, specifically addresses the final payment of items by payor banks, provisional settlements, and the availability of funds for withdrawal. It outlines the conditions under which an item is considered finally paid by a payor bank, including payment in cash, settlement without the right to revoke, and failure to revoke a provisional settlement within the permitted time. The document also discusses the effect of provisional settlements made through clearing houses or by debits and credits between banks. It states that if a collecting bank receives a settlement for an item that becomes final, the bank is accountable to its customer for the amount of the item, and any provisional credit given becomes final. Additionally, the document specifies when credits given by a bank for an item in a customer’s account become available for withdrawal. It highlights the importance of final payment in determining priorities, stop-payment orders, legal process, and setoffs. Overall, this document provides a comprehensive framework for the final payment and availability of funds in banking transactions.
Whom does it apply to?
Payor banks, presenting banks, collecting banks, customers
What does it govern?
Final payment of items by payor banks, provisional settlements, availability of funds for withdrawal
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Tennessee