MARVIN MANDEL, Governor                                  199

first:

(a)   Paid the item in cash; or

(b)   Settled for the item without reserving a
right to revoke the 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 therewith; or

(d) Made a provisional settlement for the
item and failed to revoke the settlement in the time and
manner permitted by statute, clearing house rule or
agreement. Upon a final payment under subparagraphs
(b), (c) or (d) the payor 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 provisional debits or credits for
the item are entered in accounts between the presenting
and payor banks or between the presenting and successive
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 (subsection (3) of §
4-211, subsection (2) of § 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 settlement 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