47-4215

47-4215. 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 applicable law stating a time for availability of funds and 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.