There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Article 4 Bank Deposits and Collections
355.4.215 Final payment of item by payor bank -- When provisional debits and credits become final -- When certain credits become available for withdrawal.
Download pdf(a) Paid the item in cash;
(b) Settled for the item without having a right to revoke the settlement under statute, clearing-house rule, or agreement; or (c) Made a provisional settlement for the item and failed to revoke the settlement in the time and manner permitted by statute, clearing-house rule, or
agreement. (2) If provisional settlement for an item does not become final, the item is not finally paid. (3) If provisional settlement for an item between the presenting and payor banks is made through a clearing-house or by debits or credits in an account between them,
then to the extent that provisional debits or credits for the item are entered in
accounts between the presenting and payor banks or between the presenting and
successive prior collecting banks seriatim, they become final upon final payment of
the item by the payor bank. (4) If a collecting bank receives a settlement for an item which is or becomes final, the bank is accountable to its customer for the amount of the item and any provisional
credit given for the item in an account with its customer becomes final. (5) (a) Subject to: 1. Applicable law stating a time for availability of funds; and 2. Any right of the bank to apply the credit to an obligation of the
customer, credit given by a bank for an item in an account with its customer becomes
available for withdrawal as of right as set out in paragraph (b) of this
subsection. (b) 1. If the bank has received a provisional settlement for the item, the credit
becomes available when the settlement becomes final and the bank has
had a reasonable time to receive return 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 item
is finally paid, the credit becomes available at the opening of the bank's
second banking day following receipt of the item. (6) Subject to applicable law stating a time for availability of funds and any right of a bank to apply a deposit to an obligation of the depositor, a deposit of money
becomes available for withdrawal as of right at the opening of the bank's next
banking day after receipt of the deposit. Effective: January 1, 1997 History: Repealed, reenacted, renumbered as KRS 355.4-215, and amended 1996 Ky. Acts ch. 130, sec. 97, effective January 1, 1997. -- Created 1958 Ky. Acts ch. 77,
sec. 4-213, effective July 1, 1960. Formerly codified as KRS 355.4-213.
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