Indiana Code 26-1-4-214. Right of charge-back or refund; liability of collecting bank; return of item
(b) A collecting bank returns an item when it is sent or delivered to the bank’s customer or transferor or under its instructions.
Terms Used In Indiana Code 26-1-4-214
- 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.
(d) The right to charge back is not affected by:
(1) previous use of a credit given for the item; or
(2) failure by any bank to exercise ordinary care with respect to the item, but a bank so failing remains liable.
(e) A failure to charge back or claim refund does not affect other rights of the bank against the customer or any other party.
(f) If credit is given in dollars as the equivalent of the value of an item payable in foreign money, the dollar amount of any charge-back or refund must be calculated on the basis of the bank-offered spot rate for the foreign money prevailing on the day when the person entitled to the charge-back or refund learns that it will not receive payment in ordinary course.
Formerly: Acts 1963, c.317, s.4-214. As amended by P.L.152-1986, SEC.221; P.L.222-1993, SEC.30.