§ 6A-4-213 - Medium and time of settlement by bank.
SECTION 6A-4-213
§ 6A-4-213 Medium and time of settlementby bank. – (a) With respect to settlement by a bank, the medium and time of settlement maybe prescribed by federal reserve regulations or circulars, clearing-houserules, and the like, or agreement. In the absence of such prescription:
(1) The medium of settlement is cash or credit to an accountin a federal reserve bank of or specified by the person to receive settlement;and
(2) The time of settlement, is:
(i) With respect to tender of settlement by cash, a cashier'scheck, or teller's check, when the cash or check is sent or delivered;
(ii) With respect to tender of settlement by credit in anaccount in a federal reserve bank, when the credit is made;
(iii) With respect to tender of settlement by a credit ordebit to an account in a bank, when the credit or debit is made or, in the caseof tender of settlement by authority to charge an account, when the authorityis sent or delivered; or
(iv) With respect to tender of settlement by a fundstransfer, when payment is made pursuant to § 6A-4.1-406(a) to the personreceiving settlement.
(b) If the tender of settlement is not by a medium authorizedby subsection (a) or the time of settlement is not fixed by subsection (a), nosettlement occurs until the tender of settlement is accepted by the personreceiving settlement.
(c) If settlement for an item is made by cashier's check orteller's check and the person receiving settlement, before its midnightdeadline:
(1) Presents or forwards the check for collection, settlementis final when the check is finally paid; or
(2) Fails to present or forward the check for collection,settlement is final at the midnight deadline of the person receiving settlement.
(d) If settlement for an item is made by giving authority tocharge the account of the bank giving settlement in the bank receivingsettlement, settlement is final when the charge is made by the bank receivingsettlement if there are funds available in the account for the amount of theitem.