§ 6A-4-216 - Insolvency and preference. - Rhode Island Statutes

SECTION 6A-4-216

   § 6A-4-216  Insolvency and preference.– (a) If an item is in or comes into the possession of a payor or collecting bankthat suspends payment and the item has not been finally paid, the item must bereturned by the receiver, trustee, or agent in charge of the closed bank to thepresenting 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 its customer or thepresenting bank which settlement is or becomes final, the owner of the item hasa preferred claim against the payor bank.

   (c) If a payor bank gives or a collecting bank gives orreceives a provisional settlement for an item and thereafter suspends payments,the suspension does not prevent or interfere with the settlement's becomingfinal if the finality occurs automatically upon the lapse of certain time orthe happening of certain events.

   (d) If a collecting bank receives from subsequent partiessettlement for an item, which settlement is or becomes final and the banksuspends payments without making a settlement for the item with its customerwhich settlement is or becomes final, the owner of the item has a preferredclaim against the collecting bank.