2006 New York Code - Depositary And Collecting Banks

 
  Section 4--211. Media of Remittance; Provisional and Final Settlement in
                    Remittance Cases.
    (1) A collecting bank may take in settlement of an item
         (a) a  check of the remitting bank or of another bank on any bank
             except the remitting bank; or
         (b) a  cashier's  check  or  similar  primary  obligation  of   a
             remitting  bank  which  is  a  member  of or clears through a
             member of the same clearing house or group as the  collecting
             bank; or
         (c) appropriate  authority  to charge an account of the remitting
             bank or of another bank with the collecting bank; or
         (d) if the item is drawn upon or payable by a person other than a
             bank, a cashier's check, certified check or other bank  check
             or obligation.
    (2)  If  before  its  midnight  deadline  the collecting bank properly
  dishonors a remittance check or authorization to  charge  on  itself  or
  presents  or  forwards  for  collection a remittance instrument of or on
  another bank which is of a kind approved by subsection (1)  or  has  not
  been  authorized  by  it,  the  collecting  bank  is not liable to prior
  parties in the event of  the  dishonor  of  such  check,  instrument  or
  authorization.
    (3)  A  settlement  for an item by means of a remittance instrument or
  authorization to charge is or becomes a final settlement as to both  the
  person making and the person receiving the settlement
         (a) if the remittance instrument or authorization to charge is of
             a  kind approved by subsection (1) or has not been authorized
             by the person receiving the settlement and in either case the
             person receiving the settlement acts  seasonably  before  its
             midnight deadline in presenting, forwarding for collection or
             paying  the  instrument  or  authorization,--at  the time the
             remittance instrument or authorization is finally paid by the
             payor by which it is payable;
         (b) if  the  person  receiving  the  settlement  has   authorized
             remittance  by  a  non-bank  check  or  obligation  or  by  a
             cashier's check or similar primary obligation of or  a  check
             upon the payor or other remitting bank which is not of a kind
             approved  by  subsection (1) (b),--at the time of the receipt
             of such remittance check or obligation; or
         (c) if in a case not covered by sub-paragraphs  (a)  or  (b)  the
             person  receiving the settlement fails to seasonably present,
             forward for collection, pay or return a remittance instrument
             or  authorization  to  it  to  charge  before  its   midnight
             deadline,--at such midnight deadline.