2006 New York Code - Depositary And Collecting Banks

 
  Section 4--214. Insolvency and Preference.
    (1) Any item in or coming into the possession of a payor or collecting
  bank  which suspends payment and which item is not finally paid shall be
  returned by the receiver, trustee or agent in charge of the closed  bank
  to the presenting bank or the closed bank's customer.
    (2) If a payor bank finally pays an item and suspends payments without
  making  a  settlement  for  the item with its customer or the presenting
  bank which settlement is or becomes final, the owner of the item  has  a
  preferred claim against the payor bank.
    (3)  If  a  payor  bank gives or a collecting bank gives or receives a
  provisional settlement for an item and thereafter suspends payments, the
  suspension does not prevent or interfere with  the  settlement  becoming
  final  if  such  finality occurs automatically upon the lapse of certain
  time or the happening of  certain  events  (subsection  (3)  of  Section
  4--211, subsections (1) (d), (2) and (3) of Section 4--213).
    (4)  If  a collecting bank receives from subsequent parties settlement
  for an item which settlement is or becomes final and  suspends  payments
  without  making  a settlement for the item with its customer which is or
  becomes final, the owner of the item has a preferred claim against  such
  collecting bank.