§ 26-1-4-213 — Medium and time of settlement by bank

Indiana § 26-1-4-213

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 4: Bank Deposits and Collections

Text

(a) With respect to settlement by a bank,
the medium and time of settlement may be prescribed by Federal
Reserve regulations or circulars, clearing-house rules, and the like, or
agreement. In the absence of such prescription:
(1) the medium of settlement is cash or credit to an account in a
Federal Reserve bank of or specified by the person to receive
settlement; and
(2) the time of settlement is:
(A) with respect to tender of settlement by cash, a cashier's
check, or teller's check, when the cash or check is sent or
delivered;
(B) with respect to tender of settlement by credit in an account
in a Federal Reserve Bank, when the credit is made;
(C) with respect to tender of settlement by a credit or debit to an
account in a bank, when the credit or debit is made or, in the
case of tender of settlement by authority to charge an account,
when the authority is sent or delivered; or
(D) with respect to tender of settlement by a funds transfer,
when payment is made under IC 26-1-4.1-406(a) to the person
receiving settlement.
(b) If the tender of settlement is not by a medium authorized by
subsection (a) or the time of settlement is not fixed by subsection (a),
no settlement occurs until the tender of settlement is accepted by the
person receiving settlement.
(c) If settlement for an item is made by cashier's check or teller's
check and the person receiving settlement, before its midnight
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 person receiving
settlement.
(d) If settlement for an item is made by giving authority to charge
the account of the bank giving settlement in the bank receiving
settlement, settlement is final when the charge is made by the bank
receiving settlement if there are funds available in the account for the
amount of the item.
Formerly: Acts 1963, c.317, s.4-213. As amended by
P.L.152-1986, SEC.220; P.L.243-1989, SEC.1; P.L.222-1993,
SEC.29.