8.4-213 - Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal.
§ 8.4-213. Final payment of item by payor bank; when provisional debits andcredits become final; when certain credits become available for withdrawal.
(a) An item is finally paid by a payor bank when the bank has first done anyof the following:
(1) paid the item in cash;
(2) settled for the item without having a right to revoke the settlementunder statute, clearing-house rule, or agreement; or
(3) made a provisional settlement for the item and failed to revoke thesettlement in the time and manner permitted by statute, clearing-house ruleor agreement.
(b) If provisional settlement for an item does not become final, the item isnot finally paid.
(c) If provisional settlement for an item between the presenting and payorbanks is made through a clearing house or by debits or credits in an accountbetween them, then to the extent that provisional debits or credits for theitem are entered in accounts between the presenting and payor banks orbetween the presenting and successive prior collecting banks seriatim, theybecome final upon final payment of the item by the payor bank.
(d) If a collecting bank receives a settlement for an item which is orbecomes final the bank is accountable to its customer for the amount of theitem and any provisional credit given for the item in an account with itscustomer becomes final.
(e) Subject to (i) applicable law stating a time for availability of fundsand (ii) any right of the bank to apply the credit to an obligation of thecustomer, credit given by a bank for an item in a customer's account becomesavailable for withdrawal as of right:
(1) if the bank has received a provisional settlement for the item, when thesettlement becomes final and the bank has had a reasonable time to receivereturn of the item and the item has not been received within that time;
(2) if the bank is both the depositary bank and the payor bank, and the itemis finally paid, at the opening of the bank's second banking day followingreceipt of the item.
(f) Subject to applicable law stating a time for availability of funds andany right of a bank to apply a deposit to an obligation of the depositor, adeposit of money becomes available for withdrawal as of right at the openingof the bank's next banking day after receipt of the deposit.
(1964, c. 219; 1992, c. 693.)