400.4-213. Medium and time of settlement by bank.

MISSOURI STATUTES AND CODES

400.4-213. Medium and time of settlement by bank.

Medium and time of settlement by bank.

400.4-213. (a) With respect to settlement by a bank, themedium and time of settlement may be prescribed by FederalReserve regulations or circulars, clearing-house rules, and thelike, or agreement. In the absence of such prescription:

(1) the medium of settlement is cash or credit to anaccount in a Federal Reserve bank of or specified by the personto receive settlement; and

(2) the time of settlement, is:

(i) with respect to tender of settlement by cash, acashier's check, or teller's check, when the cash or check issent or delivered;

(ii) with respect to tender of settlement by credit in anaccount in a Federal Reserve Bank, when the credit is made;

(iii) with respect to tender of settlement by a credit ordebit to an account in a bank, when the credit or debit is madeor, 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 fundstransfer, when payment is made pursuant to Section 400.4A-406(a)to the person receiving settlement.

(b) If the tender of settlement is not by a mediumauthorized by subsection (a) or the time of settlement is notfixed by subsection (a), no settlement occurs until the tender ofsettlement is accepted by the person receiving settlement.

(c) If settlement for an item is made by cashier's check orteller's check and the person receiving settlement, before itsmidnight 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 personreceiving settlement.

(d) If settlement for an item is made by giving authorityto charge the account of the bank giving settlement in the bankreceiving settlement, settlement is final when the charge is madeby the bank receiving settlement if there are funds available inthe account for the amount of the item.