(a) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearinghouse rules, and the like, or by agreement. In the absence of 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 with respect to tender of settlement
(A) by cash, a cashier's check, or teller's check, when the cash or check is sent or delivered;
(B) by credit in an account in a Federal Reserve Bank, when the credit is made;
(C) 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) by a funds transfer, when payment is made to the person receiving settlement.
(b) If the tender of settlement is not by a medium authorized by (a) of this section or the time of settlement is not fixed by (a) of this section, 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.
Section: Previous 45.04.203 45.04.204 45.04.205 45.04.206 45.04.207 45.04.208 45.04.209 45.04.210 45.04.211 45.04.212 45.04.213 45.04.214 45.04.215 45.04.216 NextLast modified: November 15, 2016