§25‑4‑212. Right of charge‑back or refund; liability ofcollecting bank; return of item.
(a) If a collectingbank has made provisional settlement with its customer for an item and itselffails by reason of dishonor, suspension of payments by a bank or otherwise toreceive a settlement for the item which is or becomes final, the bank mayrevoke the settlement given by it, charge back the amount of any credit givenfor the item to its customer's account, or obtain refund from its customer,whether or not it is able to return the item, if by its midnight deadline orwithin a longer reasonable time after it learns the facts it returns the itemor sends notification of the facts. If the return or notice is delayed beyondthe bank's midnight deadline or a longer reasonable time after it learns thefacts, the bank may revoke the settlement, charge back the credit, or obtainrefund from its customer, but it is liable for any loss resulting from thedelay. These rights to revoke, charge back, and obtain refund terminate if andwhen a settlement for the item received by the bank is or becomes final.
(b) A collecting bankreturns an item when it is sent or delivered to the bank's customer ortransferor or pursuant to its instructions.
(c) A depositary bankthat is also the payor may charge back the amount of an item to its customer'saccount or obtain refund in accordance with the section governing return of anitem received by a payor bank for credit on its books (G.S. 25‑4‑301).
(d) The right to chargeback is not affected by:
(1) Previous use of acredit given for the item; or
(2) Failure by any bankto exercise ordinary care with respect to the item, but a bank so failingremains liable.
(e) A failure to chargeback or claim refund does not affect other rights of the bank against thecustomer or any other party.
(f) If credit is givenin dollars as the equivalent of the value of an item payable in foreign money,the dollar amount of any charge‑back or refund must be calculated on thebasis of the bank‑offered spot rate for the foreign money prevailing onthe day when the person entitled to the charge‑back or refund learns thatit will not receive payment in ordinary course. (1965, c. 700, s. 1; 1995, c.232, s. 2.)
§25‑4‑212. Right of charge‑back or refund; liability ofcollecting bank; return of item.
(a) If a collectingbank has made provisional settlement with its customer for an item and itselffails by reason of dishonor, suspension of payments by a bank or otherwise toreceive a settlement for the item which is or becomes final, the bank mayrevoke the settlement given by it, charge back the amount of any credit givenfor the item to its customer's account, or obtain refund from its customer,whether or not it is able to return the item, if by its midnight deadline orwithin a longer reasonable time after it learns the facts it returns the itemor sends notification of the facts. If the return or notice is delayed beyondthe bank's midnight deadline or a longer reasonable time after it learns thefacts, the bank may revoke the settlement, charge back the credit, or obtainrefund from its customer, but it is liable for any loss resulting from thedelay. These rights to revoke, charge back, and obtain refund terminate if andwhen a settlement for the item received by the bank is or becomes final.
(b) A collecting bankreturns an item when it is sent or delivered to the bank's customer ortransferor or pursuant to its instructions.
(c) A depositary bankthat is also the payor may charge back the amount of an item to its customer'saccount or obtain refund in accordance with the section governing return of anitem received by a payor bank for credit on its books (G.S. 25‑4‑301).
(d) The right to chargeback is not affected by:
(1) Previous use of acredit given for the item; or
(2) Failure by any bankto exercise ordinary care with respect to the item, but a bank so failingremains liable.
(e) A failure to chargeback or claim refund does not affect other rights of the bank against thecustomer or any other party.
(f) If credit is givenin dollars as the equivalent of the value of an item payable in foreign money,the dollar amount of any charge‑back or refund must be calculated on thebasis of the bank‑offered spot rate for the foreign money prevailing onthe day when the person entitled to the charge‑back or refund learns thatit will not receive payment in ordinary course. (1965, c. 700, s. 1; 1995, c.232, s. 2.)
§25‑4‑212. Right of charge‑back or refund; liability ofcollecting bank; return of item.
(a) If a collectingbank has made provisional settlement with its customer for an item and itselffails by reason of dishonor, suspension of payments by a bank or otherwise toreceive a settlement for the item which is or becomes final, the bank mayrevoke the settlement given by it, charge back the amount of any credit givenfor the item to its customer's account, or obtain refund from its customer,whether or not it is able to return the item, if by its midnight deadline orwithin a longer reasonable time after it learns the facts it returns the itemor sends notification of the facts. If the return or notice is delayed beyondthe bank's midnight deadline or a longer reasonable time after it learns thefacts, the bank may revoke the settlement, charge back the credit, or obtainrefund from its customer, but it is liable for any loss resulting from thedelay. These rights to revoke, charge back, and obtain refund terminate if andwhen a settlement for the item received by the bank is or becomes final.
(b) A collecting bankreturns an item when it is sent or delivered to the bank's customer ortransferor or pursuant to its instructions.
(c) A depositary bankthat is also the payor may charge back the amount of an item to its customer'saccount or obtain refund in accordance with the section governing return of anitem received by a payor bank for credit on its books (G.S. 25‑4‑301).
(d) The right to chargeback is not affected by:
(1) Previous use of acredit given for the item; or
(2) Failure by any bankto exercise ordinary care with respect to the item, but a bank so failingremains liable.
(e) A failure to chargeback or claim refund does not affect other rights of the bank against thecustomer or any other party.
(f) If credit is givenin dollars as the equivalent of the value of an item payable in foreign money,the dollar amount of any charge‑back or refund must be calculated on thebasis of the bank‑offered spot rate for the foreign money prevailing onthe day when the person entitled to the charge‑back or refund learns thatit will not receive payment in ordinary course. (1965, c. 700, s. 1; 1995, c.232, s. 2.)
