§ 34.1-4-213 — Medium and time of settlement by bank

(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:
(i) 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
(ii) 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 pursuant to section
34.1-4.A-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:
(i) Presents or forwards the check for collection,
settlement is final when the check is finally paid; or
(ii) 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.