§490:4-216  Insolvency and preference.  (a) 
If an item is in or comes into the possession of a payor or collecting bank
that suspends payment and the item has not been finally paid, the item must be
returned by the receiver, trustee, or agent in charge of the closed bank to the
presenting bank or the closed bank's customer.



(b)  If a payor bank finally pays an item and
suspends payments without making a settlement for the item with its customer or
the presenting bank which settlement is or becomes final, the owner of the item
has a preferred claim against the payor bank.



(c)  If a payor bank gives or a collecting bank
gives or receives a provisional settlement for an item and thereafter suspends
payments, the suspension does not prevent or interfere with the settlement's
becoming final if the finality occurs automatically upon the lapse of certain
time or the happening of certain events.



(d)  If a collecting bank receives from
subsequent parties settlement for an item, which settlement is or becomes final
and the bank suspends payments without making a settlement for the item with
its customer which settlement is or becomes final, the owner of the item has a
preferred claim against the collecting bank. [L 1965, c 208, §4-214; HRS
§490:4-214; am and ren L 1991, c 118, pt of §4]