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Can you summarize TNCO 47-4-301?
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, part of the Tennessee Code, specifically addresses the recovery of payment by return of items in the context of payor banks. It outlines the circumstances under which a payor bank can revoke a settlement and recover the settlement made for a demand item. The document specifies that the payor bank can revoke the settlement by either returning the item or sending written notice of dishonor or nonpayment if the item is unavailable for return. It also clarifies that an item is considered dishonored at the time it is returned or notice is sent. The document further provides details on when an item is considered returned, depending on whether it was presented through a clearing house or in other cases. Overall, this legal document establishes the procedures and requirements 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
Tennessee