Section 4–213. (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 subsection (a) of section 4A–406 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.
Structure Massachusetts General Laws
Part I - Administration of the Government
Title XV - Regulation of Trade
Chapter 106 - Uniform Commercial Code
Article 4 - Bank Deposits and Collections
Section 4-213 - Medium and Time of Settlement by Bank
Section 4-214 - Right of Charge–back or Refund; Liability of Collecting Bank; Return of Item
Section 4-211 - When Bank Gives Value for Purposes of Holder in Due Course
Section 4-216 - Insolvency and Preference
Section 4-302 - Payor Bank's Responsibility for Late Return of Item
Section 4-407 - Payor Bank's Right to Subrogation on Improper Payment
Section 4-401 - When Bank May Charge Customer's Account
Section 4-404 - Bank Not Obliged to Pay Check More Than Six Months Old
Section 4-405 - Death or Incompetence of Customer
Section 4-406 - Customer's Duty to Discover and Report Unauthorized Signature or Alteration
Section 4-210 - Security Interest of Collecting Bank in Items, Accompanying Documents and Proceeds
Section 4-502 - Presentment of ''on Arrival'' Drafts
Section 4-209 - Encoding and Retention Warranties
Section 4-104 - Definitions and Index of Definitions
Section 4-207 - Transfer Warranties
Section 4-103 - Variation by Agreement; Measure of Damages; Action Constituting Ordinary Care
Section 4-106 - Payable Through or Payable at Bank; Collecting Bank
Section 4-107 - Separate Office of Bank
Section 4-108 - Time of Receipt of Items
Section 4-110 - Electronic Presentment
Section 4-111 - Statute of Limitations
Section 4-202 - Responsibility for Collection or Return; When Action Timely
Section 4-203 - Effect of Instructions
Section 4-204 - Methods of Sending and Presenting; Sending Direct to Payor Bank
Section 4-205 - Depositary Bank Holder of Unindorsed Item
Section 4-206 - Transfer Between Banks
Section 4-208 - Presentment Warranties
Section 4-504 - Privilege of Presenting Bank to Deal With Goods; Security Interest for Expenses
Section 4-403 - Customer's Right to Stop Payment; Burden of Proof of Loss