70A-4-214 - Right of charge-back or refund -- Liability of collecting bank -- Return of item. - Utah Statutes

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Statutes > Utah > Title-70a > Chapter-04 > 70a-4-214

70A-4-214. Right of charge-back or refund -- Liability of collecting bank -- Returnof item.
(1) If a collecting bank has made provisional settlement with its customer for an item andfails by reason of dishonor, suspension of payments by a bank, or otherwise to receive settlementfor the item which is or becomes final, the bank may revoke the settlement given by it, chargeback the amount of any credit given for the item to its customer's account, or obtain refund fromits customer, whether or not it is able to return the item, if by its midnight deadline or within alonger reasonable time after it learns the facts it returns the item or sends notification of the facts. If the return or notice is delayed beyond the bank's midnight deadline or a longer reasonable timeafter it learns the facts, the bank may revoke the settlement, charge back the credit, or obtainrefund from its customer, but it is liable for any loss resulting from the delay. These rights torevoke, charge-back, and obtain refund terminate if and when a settlement for the item receivedby the bank is or becomes final.
(2) A collecting bank returns an item when it is sent or delivered to the bank's customersor transferor or pursuant to its instructions.
(3) A depositary bank that is also the payor may charge back the amount of an item to itscustomer's account or obtain refund in accordance with the section governing return of an itemreceived by a payor bank for credit on its books, Section 70A-4-301.
(4) The right to charge back is not affected by:
(a) previous use of a credit given for the item; or
(b) failure by any bank to exercise ordinary care with respect to the item, but a bank sofailing remains liable.
(5) A failure to charge-back or claim refund does not affect other rights of the bankagainst the customer or any other party.
(6) If credit is given in dollars as the equivalent of the value of an item payable in aforeign money, the dollar amount of any charge-back or refund must be calculated on the basis ofthe bank-offered spot rate for the foreign money prevailing on the day when the person entitled tothe charge-back or refund learns that it will not receive payment in ordinary course.

Repealed and Re-enacted by Chapter 237, 1993 General Session

State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-04 > 70a-4-214

70A-4-214. Right of charge-back or refund -- Liability of collecting bank -- Returnof item.
(1) If a collecting bank has made provisional settlement with its customer for an item andfails by reason of dishonor, suspension of payments by a bank, or otherwise to receive settlementfor the item which is or becomes final, the bank may revoke the settlement given by it, chargeback the amount of any credit given for the item to its customer's account, or obtain refund fromits customer, whether or not it is able to return the item, if by its midnight deadline or within alonger reasonable time after it learns the facts it returns the item or sends notification of the facts. If the return or notice is delayed beyond the bank's midnight deadline or a longer reasonable timeafter it learns the facts, the bank may revoke the settlement, charge back the credit, or obtainrefund from its customer, but it is liable for any loss resulting from the delay. These rights torevoke, charge-back, and obtain refund terminate if and when a settlement for the item receivedby the bank is or becomes final.
(2) A collecting bank returns an item when it is sent or delivered to the bank's customersor transferor or pursuant to its instructions.
(3) A depositary bank that is also the payor may charge back the amount of an item to itscustomer's account or obtain refund in accordance with the section governing return of an itemreceived by a payor bank for credit on its books, Section 70A-4-301.
(4) The right to charge back is not affected by:
(a) previous use of a credit given for the item; or
(b) failure by any bank to exercise ordinary care with respect to the item, but a bank sofailing remains liable.
(5) A failure to charge-back or claim refund does not affect other rights of the bankagainst the customer or any other party.
(6) If credit is given in dollars as the equivalent of the value of an item payable in aforeign money, the dollar amount of any charge-back or refund must be calculated on the basis ofthe bank-offered spot rate for the foreign money prevailing on the day when the person entitled tothe charge-back or refund learns that it will not receive payment in ordinary course.

Repealed and Re-enacted by Chapter 237, 1993 General Session

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State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-04 > 70a-4-214

70A-4-214. Right of charge-back or refund -- Liability of collecting bank -- Returnof item.
(1) If a collecting bank has made provisional settlement with its customer for an item andfails by reason of dishonor, suspension of payments by a bank, or otherwise to receive settlementfor the item which is or becomes final, the bank may revoke the settlement given by it, chargeback the amount of any credit given for the item to its customer's account, or obtain refund fromits customer, whether or not it is able to return the item, if by its midnight deadline or within alonger reasonable time after it learns the facts it returns the item or sends notification of the facts. If the return or notice is delayed beyond the bank's midnight deadline or a longer reasonable timeafter it learns the facts, the bank may revoke the settlement, charge back the credit, or obtainrefund from its customer, but it is liable for any loss resulting from the delay. These rights torevoke, charge-back, and obtain refund terminate if and when a settlement for the item receivedby the bank is or becomes final.
(2) A collecting bank returns an item when it is sent or delivered to the bank's customersor transferor or pursuant to its instructions.
(3) A depositary bank that is also the payor may charge back the amount of an item to itscustomer's account or obtain refund in accordance with the section governing return of an itemreceived by a payor bank for credit on its books, Section 70A-4-301.
(4) The right to charge back is not affected by:
(a) previous use of a credit given for the item; or
(b) failure by any bank to exercise ordinary care with respect to the item, but a bank sofailing remains liable.
(5) A failure to charge-back or claim refund does not affect other rights of the bankagainst the customer or any other party.
(6) If credit is given in dollars as the equivalent of the value of an item payable in aforeign money, the dollar amount of any charge-back or refund must be calculated on the basis ofthe bank-offered spot rate for the foreign money prevailing on the day when the person entitled tothe charge-back or refund learns that it will not receive payment in ordinary course.

Repealed and Re-enacted by Chapter 237, 1993 General Session