§ 554.4214

554.4214 Right of charge-back or refund — liability of collecting bank — return of item. 1. If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank, or otherwise to receivesettlement for the item which is or becomes final, the bank may revoke the settlement givenby it, charge back the amount of any credit given for the item to its customer’s account,or obtain refund from its customer whether or not it is able to return the item, if by itsmidnight deadline or within a longer reasonable time after it learns the facts it returns theitem or sends notification of the facts. If the return or notice is delayed beyond the bank’smidnight deadline or a longer reasonable time after it learns the facts, the bank may revokethe settlement, charge back the credit, or obtain refund from its customer, but it is liable forany loss resulting from the delay. These rights to revoke, charge back, and obtain refundterminate if and when a settlement for the item received by the bank is or becomes final. 2. A collecting bank returns an item when it is sent or delivered to the bank’s customer or transferor or

fundterminate if and when a settlement for the item received by the bank is or becomes final. 2. A collecting bank returns an item when it is sent or delivered to the bank’s customer or transferor or pursuant to its instructions. 3. A depositary bank that is also the payor may charge back the amount of an item to its customer’s account or obtain refund in accordance with the section governing return of anitem received by a payor bank for credit on its books (section 554.4301). 4. The right to charge back is not affected by:a. previous use of a credit given for the item; orb. failure by any bank to exercise ordinary care with respect to the item, but a bank so failing remains liable. 5. A failure to charge back or claim refund does not affect other rights of the bank against the customer or any other party. 6. If credit is given in dollars as the equivalent of the value of an item payable in foreign money, the dollar amount of any charge-back or refund must be calculated on the basis of thebank-offered spot rate for the foreign money prevailing on the day when the person entitledto the charge-back or refund learns that it will not receive payment in ordinary course.

on the basis of thebank-offered spot rate for the foreign money prevailing on the day when the person entitledto the charge-back or refund learns that it will not receive payment in ordinary course. [C66, 71, 73, 75, 77, 79, 81, §554.4212]94 Acts, ch 1167, §99, 120, 122C95, §554.4214 Sat Dec 23 01:57:25 2023 Iowa Code 2024, Section 554.4214 (24, 0)