{"data":{"id":"us-ky/krs-355.4-301","jurisdiction":"us-ky","citation":"KRS 355.4-301","heading":"Deferred posting -- Recovery of payment by return of items -- Time of","body":"dishonor -- Return of items by payor bank.\n(1) If a payor bank settles for a demand item other than a documentary draft presented\notherwise than for immediate payment over the cou nter before midnight of the\nbanking day of receipt, the payor bank may revoke the settlement and recover the\nsettlement if, before it has made final payment and before its midnight deadline, it:\n(a) Returns the item; or\n(b) Sends a record providing notice of dishonor or nonpayment if the item is\nunavailable for return.\n(2) If a demand item is received by a payor bank for credit on its books, it may return\nthe item or send notice of dishonor and may revoke any credit given or recover the\namount thereof withdrawn by its customer, if it acts within the time limit and in the\nmanner specified in subsection (1) of this section.\n(3) Unless previous notice of dishonor has been sent, an item is dishonored at the time\nwhen for purposes of dishonor it is returned or no tice sent in accordance with this\nsection.\n(4) An item is returned:\n(a) As to an item presented through a clearing house, when it is delivered to the\npresenting or last collecting bank or to the clearing house or is sent or\ndelivered in accordance with clearing-house rules; or\n(b) In all other cases, when it is sent or delivered to the bank's customer or\ntransferor or pursuant to instructions.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33541","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"4a8bbe9984ac29886b00e91d5ca38b427f95e1312bf94c7587722344acf9f743","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.4-216","next":"us-ky/krs-355.4-302"},"notice":"GroundRules: Original legal text. Not legal advice."}