TITLE 6A

Uniform Commercial Code

CHAPTER 6A-4

Bank Deposits And Collections

PART 6A-4-201

Collection of Items: Depositary and Collecting Banks

SECTION 6A-4-215



   § 6A-4-215  Final payment of item by payor

bank – When provisional debits and credits become final – When

certain credits become available for withdrawal. –

(a) An item is finally paid by a payor bank when the bank has first done any of

the following:



   (1) Paid the item in cash;



   (2) Settled for the item without having a right to revoke the

settlement under statute, clearing-house rule, or agreement; or



   (3) Made a provisional settlement for the item and failed to

revoke the settlement in the time and manner permitted by statute,

clearing-house rule, or agreement.



   (b) If provisional settlement for an item does not become

final, the item is not finally paid.



   (c) If provisional settlement for an item between the

presenting and payor banks is made through a clearing house or by debits or

credits in an account between them, then to the extent that provisional debits

or credits for the item are entered in accounts between the presenting and

payor banks or between the presenting and successive prior collecting banks

seriatim, they become final upon final payment of the item by the payor bank.



   (d) If a collecting bank receives a settlement for an item

which is or becomes final, the bank is accountable to its customer for the

amount of the item and any provisional credit given for the item in an account

with its customer becomes final.



   (e) Subject to (i) applicable law stating a time for

availability of funds and (ii) any right of the bank to apply the credit to an

obligation of the customer, credit given by a bank for an item in a customer's

account becomes available for withdrawal as of right:



   (1) If the bank has received a provisional settlement for the

item, when the settlement becomes final and the bank has had a reasonable time

to receive return of the item and the item has not been received within that

time;



   (2) If the bank is both the depositary bank and the payor

bank, and the item is finally paid, at the opening of the bank's second banking

day following receipt of the item.



   (f) Subject to applicable law stating a time for availability

of funds and any right of a bank to apply a deposit to an obligation of the

depositor, a deposit of money becomes available for withdrawal as of right at

the opening of the bank's next banking day after receipt of the deposit.



History of Section.

(P.L. 2000, ch. 238, § 4; P.L. 2000, ch. 421, § 4.)