{"data":{"id":"us-ky/krs-355.4-213","jurisdiction":"us-ky","citation":"KRS 355.4-213","heading":"Medium and time of settlement by bank.","body":"(1) With respect to settlement by a bank, the medium and time of settlement may be\nprescribed by Federal Reserve regulations or circulars, clearing-house rules, and the\nlike, or agreement. In the absence of such prescription:\n(a) The medium of settlement is ca sh or credit to an account in a Federal Reserve\nbank of or specified by the person to receive settlement; and\n(b) The time of settlement, is:\n1. With respect to tender of settlement by cash, a cashier's check, or teller's\ncheck, when the cash or check is sent or delivered;\n2. With respect to tender of settlement by credit in an account in a Federal\nReserve bank, when the credit is made;\n3. With respect to tender of settlement by a credit or debit to an account in\na bank, when the credit or debit is made or,  in the case of tender of\nsettlement by authority to charge an account, when the authority is sent\nor delivered; or\n4. With respect to tender of settlement by a funds transfer, when payment\nis made pursuant to KRS 355.4A -406(1) to the person receiving\nsettlement.\n(2) If the tender of settlement is not by a medium authorized by subsection (1) of this\nsection or the time of settlement is not fixed by subsection (1) of this section, no\nsettlement occurs until the tender of settlement is accepted by the person receiving\nsettlement.\n(3) If settlement for an item is made by cashier's check or teller's check and the person\nreceiving settlement, before its midnight deadline:\n(a) Presents or forwards the check for collection, settlement is final when the\ncheck is finally paid; or\n(b) Fails to present or forward the check for collection, settlement is final at the\nmidnight deadline of the person receiving settlement.\n(4) If settlement for an item is made by giving authority to charge the account of the\nbank giving settlement in the bank receiving settlement, settlement is final when the\ncharge is made by the bank receiving settlement if there are funds available in the\naccount for the amount of the item.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33537","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"eea7c955acf02b3fb2d0dc06acfa4626960a9df0e78bc0c43a866ba0a7622005","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4-212","next":"us-ky/krs-355.4-214"},"notice":"GroundRules: Original legal text. Not legal advice."}