N.Y. Uniform Commercial Code 4-302 – Payor Bank's Responsibility for Late Return of Item
Section 4–302. Payor Bank's Responsibility for Late Return of Item.
Terms Used In N.Y. Uniform Commercial Code 4-302
- Depositary bank: means the first bank to which an item is transferred for collection even though it is also the payor bank;
(b) "Payor bank" means a bank by which an item is payable as drawn or accepted;
(c) "Intermediary bank" means any bank to which an item is transferred in course of collection except the depositary or payor bank;
(d) "Collecting bank" means any bank handling the item for collection except the payor bank;
(e) "Presenting bank" means any bank presenting an item except a payor bank;
(f) "Remitting bank" means any payor or intermediary bank remitting for an item. See N.Y. Uniform Commercial Code 4-105 - 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 - 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.
In the absence of a valid defense such as breach of a presentment warranty (subsection (1) of Section 4–207), settlement effected or the like, if an item is presented on and received by a payor bank the bank is accountable for the amount of
(a) a demand item other than a documentary draft whether properly
payable or not if the bank, in any case where it is not also
the depositary bank, retains the item beyond midnight of the
banking day of receipt without settling for it or, regardless
of whether it is also the depositary bank, does not pay or
return the item or send notice of dishonor until after its
midnight deadline; or
(b) any other properly payable item unless within the time
allowed for acceptance or payment of that item the bank
either accepts or pays the item or returns it and
accompanying documents.