§490:4-213  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 490:4A-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), 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. [L 1991, c 118, pt of §4]



 



Note



 



  This section is new.  Former §490:4-213 renumbered as
§490:4-215.