2006 Kentucky Revised Statutes - Article 4 Bank Deposits and Collections

Part 1.  General Provisions and Definitions

• .101   Short title.
• .102   Applicability.
• .103   Variation by agreement -- Measure of damages -- Action constituting ordinary care.
• .104   Definitions and index of definitions.
• .105   "Depositary bank" -- "Payor bank" -- "Intermediary bank" -- "Collecting bank" -- "Presenting bank."
• .106   Payable through or payable at bank -- Collecting bank.
• .107   Separate office of a bank.
• .108   Time of receipt of items.
• .109   Delays.
• .110   Electronic presentment.
• .111   Statute of limitations.

Part 2. Collection of Items: Depositary and Collecting Banks

• .201   Status of collecting bank as agent and provisional status of credits -- Applicability of article -- Item indorsed "pay any bank."
• .202   Responsibility for collection or return -- When action timely.
• .203   Effect of instructions.
• .204   Methods of sending and presenting -- Sending directly to payor bank.
• .205   Depositary bank holder of unindorsed item.
• .206   Transfer between banks.
• .207   Transfer warranties.
• .208   Presentment warranties.
• .209   Encoding and retention warranties.
• .210   Security interest of collecting bank in items, accompanying documents, and proceeds.
• .211   When bank gives value for purposes of holder in due course.
• .212   Presentment by notice of item not payable by, through, or at bank -- Liability of drawer or indorser.
• .213   Medium and time of settlement by bank.
• .214   Right of charge-back or refund -- Liability of collecting bank -- Return of item.
• .215   Final payment of item by payor bank -- When provisional debits and credits become final -- When certain credits become available for withdrawal.
• .216   Insolvency and preference.

Part 3. Collection of Items: Payor Banks

• .301   Deferred posting -- Recovery of payment by return of items -- Time of dishonor -- Return of items by payor bank.
• .302   Payor bank's responsibility for late return of item.
• .303   When items subject to notice, stop-payment order, legal process, or setoff -- Order in which items may be charged or certified.

Part 4. Relationship Between Payor Bank and Its Customer

• .401   When bank may charge customer's account.
• .402   Bank's liability to customer for wrongful dishonor -- Time of determining insufficiency of account.
• .403   Customer's right to stop payment -- Burden of proof of loss.
• .404   Bank not obligated to pay check more than six months old.
• .405   Death or incompetence of customer.
• .406   Customer's duty to discover and report unauthorized signature or alteration.
• .407   Payor bank's right to subrogation on improper payment.

Part 5. Collection of Documentary Drafts

• .501   Handling of documentary drafts -- Duty to send for presentment and to notify customer of dishonor.
• .502   Presentment of "on arrival" drafts.
• .503   Responsibility of presenting bank for documents and goods -- Report of reasons for dishonor -- Referee in case of need.
• .504   Privilege of presenting bank to deal with goods -- Security interest for expenses.