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Can you summarize VACV 8.4-213?
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 Code of Virginia’s Commercial Code - Bank Deposits and Collections, governs the final payment of an item by a payor bank, the timing at which provisional debits and credits become final, and the availability of certain credits for withdrawal. It outlines that an item is finally paid by a payor bank when it is paid in cash, settled without the right to revoke the settlement, or provisionally settled and not revoked within the permitted time. If provisional settlement does not become final, the item is not considered finally paid. Provisional debits or credits for an item become final when the payor bank finally pays the item. If a collecting bank receives a settlement for an item that becomes final, it becomes accountable to its customer for the amount of the item, and any provisional credit given becomes final. Credit given by a bank for an item in a customer’s account becomes available for withdrawal as of right when the provisional settlement becomes final and the bank has had a reasonable time to receive the item but has not received it within that time. Additionally, deposits of money become available for withdrawal as of right at the opening of the bank’s next banking day after receipt. This document applies to payor banks, presenting banks, successive prior collecting banks, and collecting banks involved in the payment and settlement process.
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; when provisional debits and credits become final; when certain credits become available for withdrawal
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Virginia