New York Laws
Part 2 - Collection of Items: Depositary and Collecting Banks
4-213 - Final Payment of Item by Payor Bank; When Provisional Debits and Credits Become Final; When Certain Credits Become Available for Withdrawal.

(1) An item is finally paid by a payor bank when the bank has done any
of the following, whichever happens first:
(a) paid the item in cash; or
(b) settled for the item without reserving a right to revoke the
settlement and without having such right under statute,
clearing house rule or agreement; or
(c) completed the process of posting the item to the indicated
account of the drawer, maker or other person to be charged
therewith; or
(d) made a provisional settlement for the item and failed to
revoke the settlement in the time and manner permitted by
statute, clearing house rule or agreement.
Upon a final payment under subparagraphs (b), (c) or (d) the payor bank
shall be accountable for the amount of the item.
(2) If provisional settlement for an item between the presenting and
payor banks is made through a clearing house or by debits or credits in
an account between them, then to the extent that provisional debits or
credits for the item are entered in accounts between the presenting and
payor banks or between the presenting and successive prior collecting
banks seriatim, they become final upon final payment of the item by the
payor bank.
(3) If a collecting bank receives a settlement for an item which is or
becomes final (subsection (3) of Section 4--211, subsection (2) of
Section 4--213) the bank is accountable to its customer for the amount
of the item and any provisional credit given for the item in an account
with its customer becomes final.
(4) Subject to any right of the bank to apply the credit to an
obligation of the customer, credit given by a bank for an item in an
account with its customer becomes available for withdrawal as of right
(a) in any case where the bank has received a provisional
settlement for the item,--when such settlement becomes final
and the bank has had a reasonable time to learn that the
settlement is final;
(b) in any case where the bank is both a depositary bank and a
payor bank and the item is finally paid,--at the opening of
the bank's second banking day following receipt of the item.
(5) A deposit of money in a bank is final when made but, subject to
any right of the bank to apply the deposit to an obligation of the
customer, the deposit becomes available for withdrawal as of right at
the opening of the bank's next banking day following receipt of the
deposit.