§ 8.4-212. Right of charge-back or refund; liability of collecting banks;return of item.
(a) If a collecting bank has made provisional settlement with its customerfor an item and fails by reason of dishonor, suspension of payments by a bankor otherwise to receive a settlement for the item which is or becomes final,the bank 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 noticeis delayed beyond the bank's midnight deadline or a longer reasonable timeafter it learns the facts, the bank may revoke the settlement, charge-backthe credit or obtain a refund from its customer, but it is liable for anyloss resulting from the delay. These rights to revoke, charge-back andobtain refund terminate if and when a settlement for the item received by thebank is or becomes final.
(b) A collecting bank returns an item when it is sent or delivered to thebank's customer or transferor or pursuant to its instructions.
(c) A depositary bank that is also the payor may charge-back the amount of anitem to its customer's account or obtain refund in accordance with thesection governing return of an item received by a payor bank for credit onits books (§ 8.4-301).
(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 with respect to the itembut any bank so failing remains liable.
(e) A failure to charge-back or claim refund does not affect other rights ofthe bank against the customer or any other party.
(f) If credit is given in dollars as the equivalent of the value of an itempayable in a foreign money the dollar amount of any charge-back or refundshall be calculated on the basis of the bank-offered spot rate for theforeign money prevailing on the day when the person entitled to thecharge-back or refund learns that it will not receive payment in ordinarycourse.
§ 8.4-212. Right of charge-back or refund; liability of collecting banks;return of item.
(a) If a collecting bank has made provisional settlement with its customerfor an item and fails by reason of dishonor, suspension of payments by a bankor otherwise to receive a settlement for the item which is or becomes final,the bank 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 noticeis delayed beyond the bank's midnight deadline or a longer reasonable timeafter it learns the facts, the bank may revoke the settlement, charge-backthe credit or obtain a refund from its customer, but it is liable for anyloss resulting from the delay. These rights to revoke, charge-back andobtain refund terminate if and when a settlement for the item received by thebank is or becomes final.
(b) A collecting bank returns an item when it is sent or delivered to thebank's customer or transferor or pursuant to its instructions.
(c) A depositary bank that is also the payor may charge-back the amount of anitem to its customer's account or obtain refund in accordance with thesection governing return of an item received by a payor bank for credit onits books (§ 8.4-301).
(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 with respect to the itembut any bank so failing remains liable.
(e) A failure to charge-back or claim refund does not affect other rights ofthe bank against the customer or any other party.
(f) If credit is given in dollars as the equivalent of the value of an itempayable in a foreign money the dollar amount of any charge-back or refundshall be calculated on the basis of the bank-offered spot rate for theforeign money prevailing on the day when the person entitled to thecharge-back or refund learns that it will not receive payment in ordinarycourse.
§ 8.4-212. Right of charge-back or refund; liability of collecting banks;return of item.
(a) If a collecting bank has made provisional settlement with its customerfor an item and fails by reason of dishonor, suspension of payments by a bankor otherwise to receive a settlement for the item which is or becomes final,the bank 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 noticeis delayed beyond the bank's midnight deadline or a longer reasonable timeafter it learns the facts, the bank may revoke the settlement, charge-backthe credit or obtain a refund from its customer, but it is liable for anyloss resulting from the delay. These rights to revoke, charge-back andobtain refund terminate if and when a settlement for the item received by thebank is or becomes final.
(b) A collecting bank returns an item when it is sent or delivered to thebank's customer or transferor or pursuant to its instructions.
(c) A depositary bank that is also the payor may charge-back the amount of anitem to its customer's account or obtain refund in accordance with thesection governing return of an item received by a payor bank for credit onits books (§ 8.4-301).
(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 with respect to the itembut any bank so failing remains liable.
(e) A failure to charge-back or claim refund does not affect other rights ofthe bank against the customer or any other party.
(f) If credit is given in dollars as the equivalent of the value of an itempayable in a foreign money the dollar amount of any charge-back or refundshall be calculated on the basis of the bank-offered spot rate for theforeign money prevailing on the day when the person entitled to thecharge-back or refund learns that it will not receive payment in ordinarycourse.
