2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 42 - Collection of Items: Depositary and Collecting Banks
Section 4213 - Medium and time of settlement by bank

     § 4213.  Medium and time of settlement by bank.
        (a)  Certain rules regarding settlement by bank.--With
     respect to settlement by a bank, the medium and time of
     settlement may be prescribed by Federal Reserve regulations or
     circulars, clearinghouse rules, and the like, or agreement. In
     the absence of such prescription:
            (1)  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
            (2)  the time of settlement is:
                (i)  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;
                (ii)  with respect to tender of settlement by credit
            in an account in a Federal Reserve bank, when the credit
            is made;
                (iii)  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
                (iv)  with respect to tender of settlement by a funds
            transfer, when payment is made pursuant to section
            4A406(a) (relating to payment by originator to
            beneficiary; discharge of underlying obligation) to the
            person receiving settlement.
        (b)  When settlement occurs under certain circumstances not
     covered by subsection (a).--If the tender of settlement is not
     by a medium authorized by subsection (a) or the time of
     settlement is not fixed by subsection (a), no settlement occurs
     until the tender of settlement is accepted by the person
     receiving settlement.
        (c)  Settlement by cashier's check or teller's check.--If
     settlement for an item is made by cashier's check or teller's
     check and the person receiving settlement, before its midnight
     deadline:
            (1)  presents or forwards the check for collection,
        settlement is final when the check is finally paid; or
            (2)  fails to present or forward the check for
        collection, settlement is final at the midnight deadline of
        the person receiving settlement.
        (d)  Settlement by tender of authority to charge account of
     bank making settlement in bank 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.
     (July 9, 1992, P.L.507, No.97, eff. one year)

        1992 Amendment.  Act 97 added present section 4213 and
     renumbered former section 4213 to present section 4215.