400.4-216. Insolvency and preference. - Missouri Statutes

Insolvency and preference.

400.4-216. (a) If an item is in or comes into thepossession of a payor or collecting bank that suspends paymentand the item has not been finally paid, the item must be returnedby the receiver, trustee, or agent in charge of the closed bankto the presenting bank or the closed bank's customer.

(b) If a payor bank finally pays an item and suspendspayments without making a settlement for the item with itscustomer or the presenting bank which settlement is or becomesfinal, the owner of the item has a preferred claim against thepayor bank.

(c) If a payor bank gives or a collecting bank gives orreceives a provisional settlement for an item and thereaftersuspends payments, the suspension does not prevent or interferewith the settlement's becoming final if the finality occursautomatically upon the lapse of certain time or the happening ofcertain events.

(d) If a collecting bank receives from subsequent partiessettlement for an item which settlement is or becomes final andthe bank suspends payments without making a settlement for theitem with its customer which settlement is or becomes final, theowner of the item has a preferred claim against the collectingbank.

(L. 1992 S.B. 448)