Right of charge-back or refund--liability of collecting bank--returnof item.
400.4-214. (a) If a collecting bank has made provisionalsettlement with its customer for an item and fails by reason ofdishonor, suspension of payments by a bank, or otherwise toreceive settlement for the item which is or becomes final, thebank may revoke the settlement given by it, charge back theamount of any credit given for the item to its customer'saccount, or obtain refund from its customer, whether or not it isable to return the items, if by its midnight deadline or within alonger reasonable time after it learns the facts it returns theitem or sends notification of the facts. If the return or noticeis delayed beyond the bank's midnight deadline or a longerreasonable time after it learns the facts, the bank may revokethe settlement, charge back the credit, or obtain refund from itscustomer, but it is liable for any loss resulting from the delay.These rights to revoke, charge back, and obtain refund terminateif and when a settlement for the item received by the bank is orbecomes final.
(b) A collecting bank returns an item when it is sent ordelivered to the bank's customer or transferor or pursuant to itsinstructions.
(c) A depositary bank that is also the payor may chargeback the amount of an item to its customer's account or obtainrefund in accordance with the section governing return of an itemreceived by a payor bank for credit on its books (section400.4-301).
(d) The right to charge back is not affected by:
(1) previous use of a credit given for the item; or
(2) failure by any bank to exercise ordinary care withrespect to the item, but a bank so failing remains liable.
(e) A failure to charge back or claim refund does notaffect other rights of the bank against the customer or any otherparty.
(f) If credit is given in dollars as the equivalent of thevalue of an item payable in a foreign money, the dollar amount ofany charge-back or refund must be calculated on the basis of thebank-offered spot rate for the foreign money prevailing on theday when the person entitled to the charge-back or refund learnsthat it will not receive payment in ordinary course.
(L. 1992 S.B. 448)
*No continuity with § 400.4-214 as repealed by L. 1992 S.B. 448.
Right of charge-back or refund--liability of collecting bank--returnof item.
400.4-214. (a) If a collecting bank has made provisionalsettlement with its customer for an item and fails by reason ofdishonor, suspension of payments by a bank, or otherwise toreceive settlement for the item which is or becomes final, thebank may revoke the settlement given by it, charge back theamount of any credit given for the item to its customer'saccount, or obtain refund from its customer, whether or not it isable to return the items, if by its midnight deadline or within alonger reasonable time after it learns the facts it returns theitem or sends notification of the facts. If the return or noticeis delayed beyond the bank's midnight deadline or a longerreasonable time after it learns the facts, the bank may revokethe settlement, charge back the credit, or obtain refund from itscustomer, but it is liable for any loss resulting from the delay.These rights to revoke, charge back, and obtain refund terminateif and when a settlement for the item received by the bank is orbecomes final.
(b) A collecting bank returns an item when it is sent ordelivered to the bank's customer or transferor or pursuant to itsinstructions.
(c) A depositary bank that is also the payor may chargeback the amount of an item to its customer's account or obtainrefund in accordance with the section governing return of an itemreceived by a payor bank for credit on its books (section400.4-301).
(d) The right to charge back is not affected by:
(1) previous use of a credit given for the item; or
(2) failure by any bank to exercise ordinary care withrespect to the item, but a bank so failing remains liable.
(e) A failure to charge back or claim refund does notaffect other rights of the bank against the customer or any otherparty.
(f) If credit is given in dollars as the equivalent of thevalue of an item payable in a foreign money, the dollar amount ofany charge-back or refund must be calculated on the basis of thebank-offered spot rate for the foreign money prevailing on theday when the person entitled to the charge-back or refund learnsthat it will not receive payment in ordinary course.
(L. 1992 S.B. 448)
*No continuity with § 400.4-214 as repealed by L. 1992 S.B. 448.
Right of charge-back or refund--liability of collecting bank--returnof item.
400.4-214. (a) If a collecting bank has made provisionalsettlement with its customer for an item and fails by reason ofdishonor, suspension of payments by a bank, or otherwise toreceive settlement for the item which is or becomes final, thebank may revoke the settlement given by it, charge back theamount of any credit given for the item to its customer'saccount, or obtain refund from its customer, whether or not it isable to return the items, if by its midnight deadline or within alonger reasonable time after it learns the facts it returns theitem or sends notification of the facts. If the return or noticeis delayed beyond the bank's midnight deadline or a longerreasonable time after it learns the facts, the bank may revokethe settlement, charge back the credit, or obtain refund from itscustomer, but it is liable for any loss resulting from the delay.These rights to revoke, charge back, and obtain refund terminateif and when a settlement for the item received by the bank is orbecomes final.
(b) A collecting bank returns an item when it is sent ordelivered to the bank's customer or transferor or pursuant to itsinstructions.
(c) A depositary bank that is also the payor may chargeback the amount of an item to its customer's account or obtainrefund in accordance with the section governing return of an itemreceived by a payor bank for credit on its books (section400.4-301).
(d) The right to charge back is not affected by:
(1) previous use of a credit given for the item; or
(2) failure by any bank to exercise ordinary care withrespect to the item, but a bank so failing remains liable.
(e) A failure to charge back or claim refund does notaffect other rights of the bank against the customer or any otherparty.
(f) If credit is given in dollars as the equivalent of thevalue of an item payable in a foreign money, the dollar amount ofany charge-back or refund must be calculated on the basis of thebank-offered spot rate for the foreign money prevailing on theday when the person entitled to the charge-back or refund learnsthat it will not receive payment in ordinary course.
(L. 1992 S.B. 448)
*No continuity with § 400.4-214 as repealed by L. 1992 S.B. 448.
