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Can you summarize UTCO 70A-4-301?
Collection of Items - Payor Banks > Deferred posting -- Recovery of payment by return of items -- Time of dishonor -- Return of item by payor bank.
Short Summary
This legal document governs the actions and responsibilities of payor banks in the collection of items. It outlines the conditions under which a payor bank can settle for a demand item and the rights of the payor bank to revoke the settlement and recover the payment. The document specifies that a payor bank can return the item or send written notice of dishonor or nonpayment if the item is unavailable for return. It also allows the payor bank to return a demand item received for credit on its books or send notice of dishonor within a specified time limit. The document further clarifies that an item is considered dishonored at the time it is returned or notice is sent. The methods of returning an item are also defined, including delivery to the presenting or last collecting bank, the clearinghouse, or the bank’s customer or transferor. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Payor banks
What does it govern?
Collection of Items - Payor Banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Utah