84-4-213. Medium and time of settlement by bank. (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:
(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:
(A) 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;
(B) with respect to tender of settlement by credit in an account in a federal reserve bank, when the credit is made;
(C) 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
(D) with respect to tender of settlement by a funds transfer, when payment is made pursuant to K.S.A. 84-4a-406(a) and amendments thereto 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 deadlines:
(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.
History: L. 1965, ch. 564, § 220; L. 1991, ch. 296, § 94; Feb. 1, 1992.
Structure Kansas Statutes
Chapter 84 - Uniform Commercial Code
Article 4 - Bank Deposits And Collections
84-4-103 Variation by agreement; measure of damages; action constituting ordinary care.
84-4-104 Definitions and index of definitions.
84-4-106 Payable through or payable at bank; collecting bank.
84-4-107 Separate office of bank.
84-4-108 Time of receipt of items.
84-4-110 Electronic presentment.
84-4-111 Statute of limitations.
84-4-202 Responsibility for collection or return; when action timely.
84-4-203 Effect of instructions.
84-4-204 Methods of sending and presenting; sending directly to payor bank.
84-4-205 Depository bank holder of unendorsed item.
84-4-206 Transfer between banks.
84-4-208 Presentment warranties.
84-4-209 Encoding and retention warranties.
84-4-210 Security interest of collecting bank in items, accompanying documents and proceeds.
84-4-211 When bank gives value for purposes of holder in due course.
84-4-213 Medium and time of settlement by bank.
84-4-214 Right of charge-back or refund; liability of collecting bank; return of item.
84-4-216 Insolvency and preference.
84-4-302 Payor bank's responsibility for late return of item.
84-4-401 When bank may charge customer's account.
84-4-403 Customer's right to stop payment; burden of proof of loss.
84-4-404 Bank not obligated to pay check more than six months old.
84-4-405 Death or incompetence of customer.
84-4-406 Customer's duty to discover and report unauthorized signature or alteration.
84-4-407 Payor bank's right to subrogation on improper payment.
84-4-502 Presentment of "on arrival" drafts.
84-4-504 Privilege of presenting bank to deal with goods; security interest for expenses.