(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:
The medium of settlement is cash or credit to an account in a federal reserve bank ofor specified by the person to receive settlement; and
The time of settlement is:
With respect to tender of settlement by cash, a cashier's check, or teller's check, whenthe cash or check is sent or delivered;
With respect to tender of settlement by credit in an account in a federal reserve bank,when the credit is made;
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
With respect to tender of settlement by a funds transfer, when payment is madepursuant to section 4-4.5-406 (a) to the person receiving settlement.
If the tender of settlement is not by a medium authorized by subsection (a) of thissection or the time of settlement is not fixed by subsection (a) of this section, no settlement occurs until the tender of settlement is accepted by the person receiving settlement.
If settlement for an item is made by cashier's check or teller's check and the personreceiving settlement, before its midnight deadline:
Presents or forwards the check for collection, settlement is final when the check isfinally paid; or
Fails to present or forward the check for collection, settlement is final at the midnightdeadline 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.
Source: L. 94: Entire article amended with relocations, p. 892, § 2, effective January 1, 1995.
Editor's note: This section is similar to former § 4-4-211 as it existed prior to 1994, and the former § 4-4-213 was relocated to § 4-4-215.