554.4301 Deferred posting — recovery of payment by return of items — time of dishonor — return of items by payor bank. 1. If a payor 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 the payment settlement if, before ithas made final payment and before its midnight deadline, it a. returns the item; orb. sends written notice of dishonor or nonpayment if the item is unavailable for return; and the item or notice includes the reason for dishonor or nonpayment. 2. If a demand item is received by a payor bank for credit on its books, it may return the item or send notice of dishonor and may revoke any credit given or recover the amountthereof withdrawn by its customer, if it acts within the time limit and in the manner specifiedin subsection 1. 3.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 in accordance with this section. 4. An item is returned:a. ess 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 in accordance with this section. 4. An item is returned:a. as to an item presented through a clearing house, when it is delivered to the presenting or last collecting bank or to the clearing house or is sent or delivered in accordance withclearing-house rules; or b. in all other cases, when it is sent or delivered to the bank’s customer or transferor or pursuant to that customer’s or transferor’s instructions. [C66, 71, 73, 75, 77, 79, 81, §554.4301]94 Acts, ch 1167, §104, 122Referred to in §554.3502, 554.4214 Sat Dec 23 01:57:27 2023 Iowa Code 2024, Section 554.4301 (24, 0)
Iowa Legal Code