400.4-301. Deferred posting--recovery of payment by return of items--time of dishonor--return of items by payor bank. - Missouri Statutes

Deferred posting--recovery of payment by return of items--time ofdishonor--return of items by payor bank.

400.4-301. (a) If a payor bank settles for a demand itemother than a documentary draft presented otherwise than forimmediate payment over the counter before midnight of the bankingday of receipt the payor bank may revoke the settlement andrecover the settlement if, before it has made final payment andbefore its midnight deadline, it

(1) returns the item; or

(2) sends written notice of dishonor or nonpayment if theitem is unavailable for return.

(b) If a demand item is received by a payor bank for crediton its books, it may return the item or send notice of dishonorand may revoke any credit given or recover the amount thereofwithdrawn by its customer, if it acts within the time limit andin the manner specified in subsection (a).

(c) Unless previous notice of dishonor has been sent anitem is dishonored at the time when for purposes of dishonor itis returned or notice sent in accordance with this section.

(d) An item is returned:

(1) as to an item presented through a clearing house, whenit is delivered to the presenting or last collecting bank or tothe clearing house or is sent or delivered in accordance withclearing-house rules; or

(2) in all other cases, when it is sent or delivered to thebank's customer or transferor or pursuant to instructions.

(L. 1963 p. 503 § 4-301, A.L. 1992 S.B. 448)