§ 6A-4-214 Right of charge-back or refund– Liability of collecting bank – Return of item. – (a) If a collecting bank has made provisional settlement with its customer foran item and fails by reason of dishonor, suspension of payments by a bank, orotherwise to receive settlement for the item which is or becomes final, thebank may revoke the settlement given by it, charge back the amount of anycredit given for the item to its customer's account, or obtain refund from itscustomer, whether or not it is able to return the item, if by its midnightdeadline or within a longer reasonable time after it learns the facts itreturns the item or sends notification of the facts. If the return or notice isdelayed beyond the bank's midnight deadline or a longer reasonable time afterit learns the facts, the bank may revoke the settlement, charge back thecredit, or obtain refund from its customer, but it is liable for any lossresulting from the delay. These rights to revoke, charge back, and obtainrefund terminate if and when a settlement for the item received by the bank isor becomes final.
(b) A collecting bank returns an item when it is sent ordelivered to the bank's customer or transferor or pursuant to its instructions.
(c) A depositary bank that is also the payor may charge backthe amount of an item to its customer's account or obtain refund in accordancewith the section governing return of an item received by a payor bank forcredit on its books (§ 6A-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 not affectother rights of the bank against the customer or any other party.
(f) If credit is given in dollars as the equivalent of thevalue of an item payable in foreign money, the dollar amount of any charge-backor refund must be calculated on the basis of the bank-offered spot rate for theforeign money prevailing on the day when the person entitled to the charge-backor refund learns that it will not receive payment in ordinary course.
§ 6A-4-214 Right of charge-back or refund– Liability of collecting bank – Return of item. – (a) If a collecting bank has made provisional settlement with its customer foran item and fails by reason of dishonor, suspension of payments by a bank, orotherwise to receive settlement for the item which is or becomes final, thebank may revoke the settlement given by it, charge back the amount of anycredit given for the item to its customer's account, or obtain refund from itscustomer, whether or not it is able to return the item, if by its midnightdeadline or within a longer reasonable time after it learns the facts itreturns the item or sends notification of the facts. If the return or notice isdelayed beyond the bank's midnight deadline or a longer reasonable time afterit learns the facts, the bank may revoke the settlement, charge back thecredit, or obtain refund from its customer, but it is liable for any lossresulting from the delay. These rights to revoke, charge back, and obtainrefund terminate if and when a settlement for the item received by the bank isor becomes final.
(b) A collecting bank returns an item when it is sent ordelivered to the bank's customer or transferor or pursuant to its instructions.
(c) A depositary bank that is also the payor may charge backthe amount of an item to its customer's account or obtain refund in accordancewith the section governing return of an item received by a payor bank forcredit on its books (§ 6A-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 not affectother rights of the bank against the customer or any other party.
(f) If credit is given in dollars as the equivalent of thevalue of an item payable in foreign money, the dollar amount of any charge-backor refund must be calculated on the basis of the bank-offered spot rate for theforeign money prevailing on the day when the person entitled to the charge-backor refund learns that it will not receive payment in ordinary course.
§ 6A-4-214 Right of charge-back or refund– Liability of collecting bank – Return of item. – (a) If a collecting bank has made provisional settlement with its customer foran item and fails by reason of dishonor, suspension of payments by a bank, orotherwise to receive settlement for the item which is or becomes final, thebank may revoke the settlement given by it, charge back the amount of anycredit given for the item to its customer's account, or obtain refund from itscustomer, whether or not it is able to return the item, if by its midnightdeadline or within a longer reasonable time after it learns the facts itreturns the item or sends notification of the facts. If the return or notice isdelayed beyond the bank's midnight deadline or a longer reasonable time afterit learns the facts, the bank may revoke the settlement, charge back thecredit, or obtain refund from its customer, but it is liable for any lossresulting from the delay. These rights to revoke, charge back, and obtainrefund terminate if and when a settlement for the item received by the bank isor becomes final.
(b) A collecting bank returns an item when it is sent ordelivered to the bank's customer or transferor or pursuant to its instructions.
(c) A depositary bank that is also the payor may charge backthe amount of an item to its customer's account or obtain refund in accordancewith the section governing return of an item received by a payor bank forcredit on its books (§ 6A-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 not affectother rights of the bank against the customer or any other party.
(f) If credit is given in dollars as the equivalent of thevalue of an item payable in foreign money, the dollar amount of any charge-backor refund must be calculated on the basis of the bank-offered spot rate for theforeign money prevailing on the day when the person entitled to the charge-backor refund learns that it will not receive payment in ordinary course.
