Arizona Laws 47-4213. Medium and time of settlement by bank
A. 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:
Terms Used In Arizona Laws 47-4213
- Account: means any deposit or credit account with a bank, including a demand, time, savings, passbook, share draft or like account, other than an account evidenced by a certificate of deposit. See Arizona Laws 47-4104
- Item: means an instrument or a promise or order to pay money handled by a bank for collection or payment. See Arizona Laws 47-4104
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
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:
(a) With respect to tender of settlement by cash, a cashier’s check or a teller’s check, when the cash or check is sent or delivered;
(b) With respect to tender of settlement by credit in an account in a federal reserve bank, when the credit is made;
(c) 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
(d) With respect to tender of settlement by a funds transfer, when payment is made pursuant to section 47-4A406, subsection A to the person receiving settlement.
B. If the tender of settlement is not by a medium authorized by subsection A of this section or the time of settlement is not fixed by subsection A of this section, no settlement occurs until the tender of settlement is accepted by the person receiving settlement.
C. 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. 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.