(a) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearinghouse rules, and the like, or agreement. In the absence of such prescription: (1) 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 (2) the time of settlement, is: (i) 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; (ii) with respect to tender of settlement by credit in an account in a Federal Reserve bank, when the credit is made; (iii) 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 (iv) with respect to tender of settlement by a funds transfer, when payment is made pursuant to section 42a-4A-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: (1) Presents or forwards the check for collection, settlement is final when the check is finally paid; or (2) 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.
(1959, P.A. 133, S. 4-213; P.A. 91-304, S. 91.)
History: P.A. 91-304 entirely replaced former provisions re final payment of item by payor bank, when provisional debits and credits become final and when certain credits become available for withdrawal with provisions re medium and time of settlement by bank.
See Sec. 42a-4-215 for successor provisions to Sec. 42a-4-213, revised to 1991, re final payment of item by payor bank, when provisional debits and credits become final and when certain credits become available for withdrawal.
Cited. 230 C. 486; 232 C. 167.
Cited. 2 CA 110.
Cited. 39 CS 240.
Structure Connecticut General Statutes
Title 42a - Uniform Commercial Code
Article 4 - Bank Deposits and Collections
Section 42a-4-101. - Short title: Uniform Commercial Code–Bank Deposits and Collections.
Section 42a-4-102. - Applicability.
Section 42a-4-103. - Variation by agreement. Measure of damages. Action constituting ordinary care.
Section 42a-4-104. - Definitions and index of definitions.
Section 42a-4-106. - Payable through or payable at bank. Collecting bank.
Section 42a-4-107. - Separate office of bank.
Section 42a-4-108. - Time of receipt of items.
Section 42a-4-110. - Electronic presentment.
Section 42a-4-111. - Statute of limitations.
Section 42a-4-202. - Responsibility for collection or return. When action timely.
Section 42a-4-203. - Effect of instructions.
Section 42a-4-204. - Methods of sending and presenting. Sending directly to payor bank.
Section 42a-4-205. - Depositary bank holder of unendorsed item.
Section 42a-4-206. - Transfer between banks.
Section 42a-4-207. - Transfer warranties.
Section 42a-4-208. - Presentment warranties.
Section 42a-4-209. - Encoding and retention warranties.
Section 42a-4-211. - When bank gives value for purposes of holder in due course.
Section 42a-4-213. - Medium and time of settlement by bank.
Section 42a-4-214. - Right of charge-back or refund. Liability of collecting bank. Return of item.
Section 42a-4-216. - Insolvency and preference.
Section 42a-4-302. - Payor bank's responsibility for late return of item.
Section 42a-4-401. - When bank may charge customer's account.
Section 42a-4-403. - Customer's right to stop payment. Burden of proof of loss.
Section 42a-4-404. - Bank not obligated to pay check more than six months old.
Section 42a-4-405. - Death or incompetence of customer.
Section 42a-4-406. - Customer's duty to discover and report unauthorized signature or alteration.
Section 42a-4-407. - Payor bank's right to subrogation on improper payment.