47-4213. 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:


(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 in 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 47-4A406, subsection A to the person receiving settlement.


B. If the tender of settlement is not by a medium authorized by subsection A of
this section or the time of settlement is not fixed by subsection A of this section, 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.