PART 3. 
COLLECTION OF ITEMS; PAYOR BANKS



 



§490:4-301  Deferred posting; recovery of
payment by return of items; time of dishonor; return of items by payor bank. 
(a)  If a payor bank settles for a demand item other than a documentary draft
presented otherwise than for immediate payment over the counter before midnight
of the banking day of receipt, the payor bank may revoke the settlement and
recover the settlement if, before it has made final payment and before its
midnight deadline, it:



(1)  Returns the item; or



(2)  Sends written notice of dishonor or nonpayment if
the item is unavailable for return.



(b)  If a demand item is received by a payor
bank for credit on its books, it may return the item or send notice of dishonor
and may revoke any credit given or recover the amount thereof withdrawn by its
customer, if it acts within the time limit and in the manner specified in
subsection (a).



(c)  Unless previous notice of dishonor has
been sent, an item is dishonored at the time when for purposes of dishonor it
is returned or notice sent in accordance with this section.



(d)  An item is returned:



(1)  As to an item presented through a clearing-house,
when it is delivered to the presenting or last collecting bank or to the
clearing-house or is sent or delivered in accordance with clearing-house rules;
or



(2)  In all other cases, when it is sent or delivered
to the bank's customer or transferor or pursuant to instructions. [L 1965, c
208, §4-301; HRS §490:4-301; am L 1991, c 118, pt of §4]