2009 Iowa Code
Title 13 - Commerce
Subtitle 5 - Regulation of Commercial Enterprises
CHAPTER 554 - UNIFORM COMMERCIAL CODE
554.4301 - DEFERRED POSTING -- RECOVERY OF PAYMENT BY RETURN OF ITEMS -- TIME OF DISHONOR -- RETURN OF ITEMS BY PAYOR BANK.

        554.4301  DEFERRED POSTING -- RECOVERY OF PAYMENT BY
      RETURN OF ITEMS -- TIME OF DISHONOR -- RETURN OF ITEMS BY PAYOR
      BANK.
         1.  If a payor settles for a demand item other than a documentary
      draft presented otherwise than for immediate payment over the counter
      before midnight of the banking day of receipt, the payor bank may
      revoke the settlement and recover the payment settlement if, before
      it has made final payment and before its midnight deadline, it
         a.  returns the item; or
         b.  sends written notice of dishonor or nonpayment if the item
      is unavailable for return; and the item or notice includes the reason
      for dishonor or nonpayment.
         2.  If a demand item is received by a payor bank for credit on its
      books, it may return the item or send notice of dishonor and may
      revoke any credit given or recover the amount thereof withdrawn by
      its customer, if it acts within the time limit and in the manner
      specified in subsection 1.
         3.  Unless previous notice of dishonor has been sent, an item is
      dishonored at the time when for purposes of dishonor it is returned
      or notice sent in accordance with this section.
         4.  An item is returned:
         a.  as to an item presented through a clearing house, when it
      is delivered to the presenting or last collecting bank or to the
      clearing house or is sent or delivered in accordance with
      clearing-house rules; or
         b.  in all other cases, when it is sent or delivered to the
      bank's customer or transferor or pursuant to that customer's or
      transferor's instructions.  

         Section History: Early Form

         [C66, 71, 73, 75, 77, 79, 81, § 554.4301] 

         Section History: Recent Form

         94 Acts, ch 1167, §104, 122
         Referred to in § 554.3502, 554.4214