N.Y. Uniform Commercial Code Law § 4-211: Media of Remittance; Provisional and Final Settlement in Remittance Cases

Section 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.