70A-4-213 - Medium and time of settlement by bank.
70A-4-213. Medium and time of settlement by bank.
(1) With respect to settlement by a bank, the medium and time of settlement may beprescribed by Federal Reserve regulations or circulars, clearinghouse rules, and the like, oragreement. 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:
(i) with respect to tender of settlement by cash, a cashier's check, or teller's check, whenthe 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, whenthe credit or debit is made or, in the case of tender of settlement by authority to charge anaccount, when the authority is sent or delivered; or
(iv) with respect to tender of settlement by a funds transfer, when payment is madepursuant to Section 70A-4a-406 to the person receiving settlement.
(2) If the tender of settlement is not by a medium authorized by Subsection (1) or the timeof settlement is not fixed by Subsection (1), no settlement occurs until the tender of settlement isaccepted by the person receiving settlement.
(3) If settlement for an item is made by cashier's check or teller's check and the personreceiving settlement, before its midnight deadline:
(a) presents or forwards the check for collection, settlement is final when the check isfinally paid; and
(b) fails to present or forward the check for collection, settlement is final at the midnightdeadline of the person receiving settlement.
(4) If settlement for an item is made by giving authority to charge the account of the bankgiving settlement in the bank receiving settlement, settlement is final when the charge is made bythe bank receiving settlement if there are funds available in the account for the amount of item.
Repealed and Re-enacted by Chapter 237, 1993 General Session