J. MILLARD TAWES, Governor                           869

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 there-
with; or

(d)  made a provisional settlement for the item and failed to re-
voke the settlement in the time and manner permitted by statute,
clearing house rule or agreement. Upon a final payment under sub-
paragraphs (b), (c) or (d) the pay or 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 provi-
sional debits or credits for the item are entered in accounts between
the presenting and payor banks or between the presenting and suc-
cessive 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 (Sub-section (3) of Section 4—211, Sub-section
(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 settle-
ment 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.

4—214. Insolvency and Preference.

(1)  Any item in or coming into the possession of a payor or col-
lecting bank which suspends payment and which item is not finally
paid shall be returned by the receiver, trustee or agent in charge of
the closed bank to the presenting bank or the closed bank's customer.

(2)  If a payor bank finally pays an item and suspends payments
without making a settlement for the item with its customer or the
presenting bank which settlement is or becomes final, the owner of
the item has a preferred claim against the payor bank.

(3)  If a payor bank gives or a collecting bank gives or receives
a provisional settlement for an item and thereafter suspends pay-
ments, the suspension does not prevent or interfere with the settle-
ment becoming final if such finality occurs automatically upon the