California Commercial Code

§ 4301

COM § 4301 Effective Jan 1, 1993Div. 4 · Ch. 3

Statute text

(a)If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of the banking day of receipt, the payor bank may revoke the settlement and recover the settlement if, before it has made final payment and before its midnight deadline, it either:

(1)Returns the item.

(2)Sends written notice of dishonor or nonpayment if the item is unavailable for return.

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Legislative history

Amended by Stats. 1992, Ch. 914, Sec. 37. Effective January 1, 1993.