§ 41-04-29 — (4-301) Deferred posting - Recovery of payment by return of items - Time of dishonor - Return of items by payor bank

North Dakota § 41-04-29

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-04: Bank Deposits and Collections

Text

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 made final payment and before its midnight deadline it:
a. Returns the item.
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 that
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amount thereof withdrawn by its customer, if it acts within the time limit and in the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 subsection 1.
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 under 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
under clearinghouse rules.
b. In all other cases, when it is sent or delivered to the bank's customer or transferor
or under instructions.