§ 34.1-4-216 — Insolvency and preference

(a) If an item is in or comes into the possession of a
payor or collecting bank that suspends payment and the item has
not been finally paid, the item must be returned by the
receiver, trustee, or agent in charge of the closed bank to the
presenting bank or the closed bank's customer.
(b) If a payor bank finally pays an item and suspends
payments without making a settlement for the item with its
customer or the presenting bank which settlement is or becomes
final, the owner of the item has a preferred claim against the
payor bank.
(c) If a payor bank gives or a collecting bank gives or
receives a provisional settlement for an item and thereafter
suspends payments, the suspension does not prevent or interfere
with the settlement's becoming final if the finality occurs
automatically upon the lapse of certain time or the happening of
certain events.
(d) If a collecting bank receives from subsequent parties
settlement for an item, which settlement is or becomes final and
the bank suspends payments without making a settlement for the
item with its customer which settlement is or becomes final, the
owner of the item has a preferred claim against the collecting
bank.
PART 3
COLLECTION OF ITEMS: PAYOR BANKS