PARRIS N. GLENDENING, Governor

Ch. 91

THE CASE OF TENDER OF SETTLEMENT BY AUTHORITY TO CHARGE AN ACCOUNT,
WHEN THE AUTHORITY IS SENT OR DELIVERED; OR

(IV) WITH RESPECT TO TENDER OF SETTLEMENT BY A FUNDS
TRANSFER, WHEN PAYMENT IS MADE PURSUANT TO § 4A-406(A) TO THE PERSON
RECEIVING SETTLEMENT.

(B)     IF THE TENDER OF SETTLEMENT IS NOT BY A MEDIUM AUTHORIZED BY
SUBSECTION (A) OR THE TIME OF SETTLEMENT IS NOT FIXED BY SUBSECTION (A),
NO SETTLEMENT OCCURS UNTIL THE TENDER OF SETTLEMENT IS ACCEPTED BY THE
PERSON RECEIVING SETTLEMENT.

(C)     IF SETTLEMENT FOR AN ITEM IS MADE BY CASHIER'S CHECK OR TELLER'S
CHECK AND THE PERSON RECEIVING SETTLEMENT, BEFORE ITS MIDNIGHT
DEADLINE:

(1)     PRESENTS OR FORWARDS THE CHECK FOR COLLECTION,
SETTLEMENT IS FINAL WHEN THE CHECK IS FINALLY PAID; OR

(2)     FAILS TO PRESENT OR FORWARD THE CHECK FOR COLLECTION,
SETTLEMENT IS FINAL AT THE MIDNIGHT DEADLINE OF THE PERSON RECEIVING
SETTLEMENT.

(D)    IF SETTLEMENT FOR AN ITEM IS MADE BY GIVING AUTHORITY TO
CHARGE THE ACCOUNT OF THE BANK GIVING SETTLEMENT IN THE BANK
RECEIVING SETTLEMENT, SETTLEMENT IS FINAL WHEN THE CHARGE IS MADE BY
THE BANK RECEIVING SETTLEMENT IF THERE ARE FUNDS AVAILABLE IN THE
ACCOUNT FOR THE AMOUNT OF THE ITEM.

[4-212.] 4-214.

[(1)] (A) If a collecting bank has made provisional settlement with its customer
for an item and [itself] fails by reason of dishonor, suspension of payments by a bank, or
otherwise to receive [a] settlement for the item which is or becomes final, the bank may
revoke the settlement given by it, charge-back the amount of any credit given for the item
to its customer's account, or obtain refund from its customer, whether or not it is able to
return the item, if by its midnight deadline or within a longer reasonable time after it
learns the facts it returns the item or sends notification of the facts. IF THE RETURN OR
NOTICE IS DELAYED BEYOND THE BANK'S MIDNIGHT DEADLINE OR A LONGER
REASONABLE TIME AFTER IT LEARNS THE FACTS, THE BANK MAY REVOKE THE
SETTLEMENT, CHARGE-BACK THE CREDIT, OR OBTAIN REFUND FROM ITS
CUSTOMER, BUT IT IS LIABLE FOR ANY LOSS RESULTING FROM THE DELAY. These
rights to revoke, charge-back, and obtain refund terminate if and when a settlement for
the item received by the bank is or becomes final [(subsection (3) of § 4-211 and
subsections (2) and (3) of § 4-213)].

[(2) Within the time and manner prescribed by this section and § 4-301, an
intermediary or payor bank, as the case may be, may return an unpaid item directly to the
depositary bank and may send for collection a draft on the depositary bank and obtain
reimbursement. In such case, if the depositary bank has received provisional settlement

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