Texas Business & Commerce Code - Section 4.213. Medium And Time Of Settlement By Bank
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Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 4.213. Medium And Time Of Settlement By Bank
§ 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 by agreement. In the absence
of such a 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:
(A) with respect to tender of settlement by cash,
a cashier's check, or a teller's check, when the cash or check is
sent or delivered;
(B) with respect to tender of settlement by
credit to an account in a Federal Reserve bank, when the credit is
made;
(C) 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
(D) with respect to tender of settlement by a
funds transfer, when payment is made pursuant to Section 4A.406(a)
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), a settlement does not occur 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.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.
Amended by Acts 1983, 68th Leg., p. 1531, ch. 290, § 4, eff. Aug.
29, 1983. Renumbered from § 4.211 and amended by Acts 1995, 74th
Leg., ch. 921, § 4, eff. Jan. 1, 1996.
Section: 4.206 4.207 4.208 4.209 4.210 4.211 4.212 4.213 4.214 4.215 4.216 4.301 4.302 4.303 4.401
Last modified: August 10, 2007
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