§4-213. Medium and time of settlement by bank

Link to law: http://legislature.vermont.gov/statutes/section/09A/004/00213
Published: 2015

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Title

09A

:
Uniform Commercial Code






Chapter

004

:
Bank Deposits and Collections











 

§

4-213. Medium and time of settlement by bank

(a) With respect

to settlement by a bank, the medium and time of settlement may be prescribed by

Federal Reserve regulations or circulars, clearing-house rules, and the like,

or agreement. In the absence of such prescription:

(1) the medium

of settlement is cash or credit to an account in a Federal Reserve Bank of or

specified by the person to receive settlement; and

(2) the time of

settlement, is:

(i) with respect

to tender of settlement by cash, a cashier's check, or teller's check, when the

cash or check is sent or delivered;

(ii) with

respect to tender of settlement by credit in an account in a Federal Reserve

Bank, when the credit is made;

(iii) with

respect to tender of settlement by a credit or debit to an account in a bank,

when the credit or debit is made or, in the case of tender of settlement by

authority to charge an account, when the authority is sent or delivered; or

(iv) with

respect to tender of settlement by a funds transfer, when payment is made

pursuant to section 4A-406(a) of this title to the person receiving settlement.

(b) If the

tender of settlement is not by a medium authorized by subsection (a) or the

time of settlement is not fixed by subsection (a), no settlement occurs until

the tender of settlement is accepted by the person receiving settlement.

(c) If

settlement for an item is made by cashier's check or teller's check and the

person receiving settlement, before its midnight deadline:

(1) presents or

forwards the check for collection, settlement is final when the check is

finally paid; or

(2) fails to

present or forward the check for collection, settlement is final at the

midnight deadline of the person receiving settlement.

(d) If

settlement for an item is made by giving authority to charge the account of the

bank giving settlement in the bank receiving settlement, settlement is final

when the charge is made by the bank receiving settlement if there are funds

available in the account for the amount of the item. (Added 1993, No. 158 (Adj.

Sess.), § 13, eff. Jan. 1, 1995.)
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