400.4-215. Final payment of item by payor bank--when provisional debits and credits become final--when certain credits become available for withdrawal.

MISSOURI STATUTES AND CODES

400.4-215. Final payment of item by payor bank--when provisional debits and credits become final--when certain credits become available for withdrawal.

Final payment of item by payor bank--when provisional debits andcredits become final--when certain credits become available forwithdrawal.

400.4-215. (a) An item is finally paid by a payor bankwhen the bank has first done any of the following:

(1) paid the item in cash;

(2) settled for the item without having a right to revokethe settlement under statute, clearing-house rule, or agreement;or

(3) made a provisional settlement for the item and failedto revoke the settlement in the time and manner permitted bystatute, clearing-house rule, or agreement.

(b) If provisional settlement for an item does not becomefinal, the item is not finally paid.

(c) If provisional settlement for an item between thepresenting and payor banks is made through a clearing house or bydebits or credits in an account between them, then to the extentthat provisional debits or credits for the item are entered inaccounts between the presenting and payor banks or between thepresenting and successive prior collecting banks seriatim, theybecome final upon final payment of the item by the payor bank.

(d) If a collecting bank receives a settlement for an itemwhich is or becomes final, the bank is accountable to itscustomer for the amount of the item and any provisional creditgiven for the item in an account with its customer becomes final.

(e) Subject to (i) applicable law stating a time foravailability of funds and (ii) any right of the bank to apply thecredit to an obligation of the customer, credit given by a bankfor an item in a customer's account becomes available forwithdrawal as of right:

(1) if the bank has received a provisional settlement forthe item, when the settlement becomes final and the bank has hada reasonable time to receive return of the item and the item hasnot been received within that time;

(2) if the bank is both the depositary bank and the payorbank, and the item is finally paid, at the opening of the bank'ssecond banking day following receipt of the item.

(f) Subject to applicable law stating a time foravailability of funds and any right of a bank to apply a depositto an obligation of the depositor, a deposit of money becomesavailable for withdrawal as of right at the opening of the bank'snext banking day after receipt of the deposit.