(1) An item is finally paid by a payor bank when the bank has done any of the following,
whichever happens first:
(a) paid the item in cash; or
(b) settled for the item without having a right to revoke the settlement under statute,
clearinghouse rule, or agreement; or
(c) made a provisional settlement for the item and failed to revoke the settlement
in the time and manner permitted by statute, clearinghouse rule, or agreement.
(2) If provisional settlement for an item between the presenting and payor banks is
made through a clearinghouse 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
(3) If a collecting bank receives a settlement for an item which is or becomes final
(subsections (3) and (4) of 30-4-211 and subsection (2) of this section) 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
(4) Subject to applicable law stating a time for availability of funds and any right
of the bank to apply the credit to an obligation of the customer, credit given by
a bank for an item in a customer's account becomes available for withdrawal as of
(a) if the bank has received a provisional settlement for the item, when such settlement
becomes final and the bank has had a reasonable time to receive return of the item
and the item has not been received within that time;
(b) if the bank is both the depositary bank and the payor bank and the item is finally
paid, at the opening of the bank's second banking day following receipt of the item.
(5) Subject to applicable law stating a time for availability of funds and any right
of a bank to apply a deposit to an obligation of the depositor, a deposit of money
becomes available for withdrawal as of right at the opening of the bank's next banking
day after receipt of the deposit.
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