2016 Kentucky Revised Statutes CHAPTER 355 - UNIFORM COMMERCIAL CODE Article 4 - Bank Deposits and Collections 355.4-213 Medium and time of settlement by bank.
Download as PDF
355.4-213 Medium and time of settlement by bank.
(1)
(2)
(3)
(4)
With respect to settlement by a bank, the medium and time of settlement may be
prescribed by Federal Reserve regulations or circulars, clearing-house rules, and the
like, or agreement. In the absence of such prescription:
(a) The medium of settlement is cash or credit to an account in a Federal Reserve
bank of or specified by the person to receive settlement; and
(b) The time of settlement, is:
1.
With respect to tender of settlement by cash, a cashier's check, or teller's
check, when the cash or check is sent or delivered;
2.
With respect to tender of settlement by credit in an account in a Federal
Reserve bank, when the credit is made;
3.
With respect to tender of settlement by a credit or debit to an account in
a bank, when the credit or debit is made or, in the case of tender of
settlement by authority to charge an account, when the authority is sent
or delivered; or
4.
With respect to tender of settlement by a funds transfer, when payment
is made pursuant to KRS 355.4A-406(1) to the person receiving
settlement.
If the tender of settlement is not by a medium authorized by subsection (1) of this
section or the time of settlement is not fixed by subsection (1) of this section, no
settlement occurs until the tender of settlement is accepted by the person receiving
settlement.
If settlement for an item is made by cashier's check or teller's check and the person
receiving settlement, before its midnight deadline:
(a) Presents or forwards the check for collection, settlement is final when the
check is finally paid; or
(b) Fails to present or forward the check for collection, settlement is final at the
midnight deadline of the person receiving settlement.
If settlement for an item is made by giving authority to charge the account of the
bank giving settlement in the bank receiving settlement, settlement is final when the
charge is made by the bank receiving settlement if there are funds available in the
account for the amount of the item.
Effective: January 1, 1997
History: Repealed, reenacted, and renumbered as KRS 355.4-213, 1996 Ky. Acts ch.
130, sec. 95, effective January 1, 1997. -- Created 1958 Ky. Acts ch. 77, sec. 4-211,
effective July 1, 1960.
Formerly codified as KRS 355.4-211.
History for former KRS 355.4-213: Repealed, reenacted, renumbered as KRS 355.4215, and amended, 1996 Ky.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.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.