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Can you summarize UTCO 70A-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 governs the final payment of an item by a payor bank. It outlines the conditions under which an item is considered finally paid, including when the payor bank pays the item in cash, settles for the item without the right to revoke the settlement, or makes a provisional settlement and fails to revoke it within the permitted time. The document also explains that if provisional settlement does not become final, the item is not considered finally paid. Additionally, it states that provisional debits or credits for the item become final upon final payment by the payor bank if settlement is made through a clearinghouse or by debits or credits in accounts between the presenting and payor banks. The document further clarifies 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 for the item becomes final. It also provides information on when credits for an item in a customer’s account become available for withdrawal, based on provisional settlement becoming final and the bank having a reasonable time to receive the item. Finally, it states that deposits of money become available for withdrawal at the opening of the bank’s next banking day after receipt of the deposit, subject to applicable law and any right of the bank to apply the deposit to an obligation of the depositor.
Whom does it apply to?
Payor banks, presenting banks, successive prior collecting banks, and collecting banks
What does it govern?
Final payment of item by payor bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Utah