Montana § 30-4-301 Deferred Posting -- Recovery Of Payment By Return Of Items -- Time Of Dishonor -- Return Of Items By Payor Bank

Montana Statutes

§ 30-4-301 — Deferred Posting -- Recovery Of Payment By Return Of Items -- Time Of Dishonor -- Return Of Items By Payor Bank

Montana § 30-4-301

Title 30TRADE AND COMMERCE

Ch. 4UNIFORM COMMERCIAL CODE BANK DEPOSITS AND COLLECTIONS

Part 3Collection of Items -- Payor Banks

This text of Montana § 30-4-301 (Deferred Posting -- Recovery Of Payment By Return Of Items -- Time Of Dishonor -- Return Of Items By Payor Bank) is published on Counsel Stack Legal Research, covering Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Mont. Code Ann. § 30-4-301 (2026).

Text

30-4-301 . Deferred posting -- recovery of payment by return of items -- time of dishonor -- return of items by payor bank.

(1)If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of the banking day of receipt, the payor bank may revoke the settlement and recover any settlement if before it has paid the item in cash (subsection (1)(a) of 30-4-213 ) and before its midnight deadline it:

(a)returns the item; or

(b)sends written notice of dishonor or nonpayment if the item is unavailable for return.

(2)If a demand item is received by a payor bank for credit on its books it may return such item or send notice of dishonor and may revoke any credit given or recover the amount thereof withdrawn

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30-4-301 . Deferred posting -- recovery of payment by return of items -- time of dishonor -- return of items by payor bank. (1) If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of the banking day of receipt, the payor bank may revoke the settlement and recover any settlement if before it has paid the item in cash (subsection (1)(a) of 30-4-213 ) and before its midnight deadline it:
(a) returns the item; or
(b) sends written notice of dishonor or nonpayment if the item is unavailable for return.
(2) If a demand item is received by a payor bank for credit on its books it may return such item or send notice of dishonor and may revoke any credit given or recover the amount thereof withdrawn by its customer, if it acts within the time limit and in the manner specified in the preceding subsection.
(3) Unless previous notice of dishonor has been sent an item is dishonored at the time when for purposes of dishonor it is returned or notice sent in accordance with this section.
(4) An item is returned:
(a) as to an item presented through a clearinghouse, when it is delivered to the presenting or last collecting bank or to the clearinghouse or is sent or delivered in accordance with clearinghouse rules; or
(b) in all other cases, when it is sent or delivered to the bank's customer or transferor or pursuant to instructions.