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Can you summarize WARC 62A.4-213?
COLLECTION OF ITEMS: DEPOSITORY AND COLLECTING BANKS > Medium and time of settlement by bank.
Short Summary
This legal document governs the medium and time of settlement by a bank. It applies to banks and persons involved in settlement transactions. The medium and time of settlement may be prescribed by Federal Reserve regulations, circulars, clearing-house rules, agreements, or in the absence of such prescription, the medium of settlement is cash or credit to an account in a Federal Reserve bank or specified by the person receiving settlement. The time of settlement varies depending on the method of tender, such as cash, check, credit or debit to an account, or funds transfer. If the tender of settlement is not authorized or the time of settlement is not fixed, no settlement occurs until the tender of settlement is accepted by the person receiving settlement. Additionally, settlement for an item made by cashier’s check or teller’s check is considered final when the check is paid or at the midnight deadline of the person receiving settlement if the check is not presented for collection. Settlement made by giving authority to charge an account is final when the charge is made by the receiving bank if sufficient funds are available. No specific penalties are mentioned in this document.
Whom does it apply to?
Banks and persons involved in settlement transactions
What does it govern?
Settlement by a bank
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Washington