New York Laws
Part 2 - Collection of Items: Depositary and Collecting Banks
4-211 - Media of Remittance; Provisional and Final Settlement in Remittance Cases.

(1) A collecting bank may take in settlement of an item
(a) a check of the remitting bank or of another bank on any bank
except the remitting bank; or
(b) a cashier's check or similar primary obligation of a
remitting bank which is a member of or clears through a
member of the same clearing house or group as the collecting
bank; or
(c) appropriate authority to charge an account of the remitting
bank or of another bank with the collecting bank; or
(d) if the item is drawn upon or payable by a person other than a
bank, a cashier's check, certified check or other bank check
or obligation.
(2) If before its midnight deadline the collecting bank properly
dishonors a remittance check or authorization to charge on itself or
presents or forwards for collection a remittance instrument of or on
another bank which is of a kind approved by subsection (1) or has not
been authorized by it, the collecting bank is not liable to prior
parties in the event of the dishonor of such check, instrument or
authorization.
(3) A settlement for an item by means of a remittance instrument or
authorization to charge is or becomes a final settlement as to both the
person making and the person receiving the settlement
(a) if the remittance instrument or authorization to charge is of
a kind approved by subsection (1) or has not been authorized
by the person receiving the settlement and in either case the
person receiving the settlement acts seasonably before its
midnight deadline in presenting, forwarding for collection or
paying the instrument or authorization,--at the time the
remittance instrument or authorization is finally paid by the
payor by which it is payable;
(b) if the person receiving the settlement has authorized
remittance by a non-bank check or obligation or by a
cashier's check or similar primary obligation of or a check
upon the payor or other remitting bank which is not of a kind
approved by subsection (1) (b),--at the time of the receipt
of such remittance check or obligation; or
(c) if in a case not covered by sub-paragraphs (a) or (b) the
person receiving the settlement fails to seasonably present,
forward for collection, pay or return a remittance instrument
or authorization to it to charge before its midnight
deadline,--at such midnight deadline.

Structure New York Laws