N.Y. Uniform Commercial Code 4-211 – Media of Remittance; Provisional and Final Settlement in Remittance Cases
Section 4–211. Media of Remittance; Provisional and Final Settlement in
Terms Used In N.Y. Uniform Commercial Code 4-211
- Account: means any account with a bank and includes a
checking, time, interest or savings account;
(b) "Afternoon" means the period of a day between noon and
midnight;
(c) "Banking day" means that part of any day on which a bank is
open to the public for carrying on substantially all of its
banking functions;
(d) "Clearing house" means any association of banks or other
payors regularly clearing items;
(e) "Customer" means any person having an account with a bank or
for whom a bank has agreed to collect items and includes a
bank carrying an account with another bank;
(f) "Documentary draft" means any negotiable or non-negotiable
draft with accompanying documents, securities or other papers
to be delivered against honor of the draft;
(g) "Item" means any instrument for the payment of money even
though it is not negotiable but does not include money;
(h) "Midnight deadline" with respect to a bank is midnight on its
next banking day following the banking day on which it
receives the relevant item or notice or from which the time
for taking action commences to run, whichever is later;
(i) "Obligated bank" means the acceptor of a certified check, the
issuer of a cashier's check, or the drawer of a teller's
check;
(j) "Properly payable" includes the availability of funds for
payment at the time of decision to pay or dishonor;
(k) "Remitter" means the buyer from the obligated bank of a
cashier's check or a teller's check, and the drawer of a
certified check;
(l) "Settle" means to pay in cash, by clearing house settlement,
in a charge or credit or by remittance, or otherwise as
instructed. See N.Y. Uniform Commercial Code 4-104 - Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- 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.
Remittance Cases.
(1) A collecting bank may take in settlement of an item
(a) a check of the remitting bank or of another bank on any bank
except the remitting bank; or
(b) a cashier's check or similar primary obligation of a
remitting bank which is a member of or clears through a
member of the same clearing house or group as the collecting
bank; or
(c) appropriate authority to charge an account of the remitting
bank or of another bank with the collecting bank; or
(d) if the item is drawn upon or payable by a person other than a
bank, a cashier's check, certified check or other bank check
or obligation.
(2) If before its midnight deadline the collecting bank properly dishonors a remittance check or authorization to charge on itself or presents or forwards for collection a remittance instrument of or on another bank which is of a kind approved by subsection (1) or has not been authorized by it, the collecting bank is not liable to prior parties in the event of the dishonor of such check, instrument or authorization.
(3) A settlement for an item by means of a remittance instrument or authorization to charge is or becomes a final settlement as to both the person making and the person receiving the settlement
(a) if the remittance instrument or authorization to charge is of
a kind approved by subsection (1) or has not been authorized
by the person receiving the settlement and in either case the
person receiving the settlement acts seasonably before its
midnight deadline in presenting, forwarding for collection or
paying the instrument or authorization,–at the time the
remittance instrument or authorization is finally paid by the
payor by which it is payable;
(b) if the person receiving the settlement has authorized
remittance by a non-bank check or obligation or by a
cashier's check or similar primary obligation of or a check
upon the payor or other remitting bank which is not of a kind
approved by subsection (1) (b),–at the time of the receipt
of such remittance check or obligation; or
(c) if in a case not covered by sub-paragraphs (a) or (b) the
person receiving the settlement fails to seasonably present,
forward for collection, pay or return a remittance instrument
or authorization to it to charge before its midnight
deadline,–at such midnight deadline.