reglab/statecodes huggingface dataset:
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 5 - Presentment, Notice of Dishonor and Protest › 3-508 - Notice of Dishonor.

Section 3--508. Notice of Dishonor.
(1) Notice of dishonor may be given to any person who may be liable on
the  instrument  by  or  on  behalf  of  the holder or any party who has
himself received notice, or any other party who can be compelled to  pay
the  instrument.  In  addition  an  agent  or  bank  in  whose hands the
instrument is dishonored may give notice to his principal or customer or
to another agent or bank from which the instrument was received.
(2) Any necessary notice must be given by a bank before  its  midnight
deadline  and  by any other person before midnight of the third business
day after dishonor or receipt of notice of dishonor.
(3) Notice may be given in any reasonable manner. It may  be  oral  or
written and in any terms which identify the instrument and state that it
has  been  dishonored. A misdescription which does not mislead the party
notified does not vitiate the notice. Sending the instrument  bearing  a
stamp,  ticket  or  writing  stating that acceptance or payment has been
refused or sending a notice of debit with respect to the  instrument  is
sufficient.
(4) Written notice is given when sent although it is not received.
(5) Notice to one partner is notice to each although the firm has been
dissolved.
(6)  When  any party is in insolvency proceedings instituted after the
issue of the instrument notice may be given either to the  party  or  to
the representative of his estate.
(7)  When  any  party is dead or incompetent notice may be sent to his
last known address or given to his personal representative.
(8) Notice operates for the benefit of all parties who have rights  on
the instrument against the party notified.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 5 - Presentment, Notice of Dishonor and Protest › 3-509 - Protest; Noting for Protest.

Section 3--509. Protest; Noting for Protest.
(1)  A  protest  is  a certificate of dishonor made under the hand and
seal of a United States consul or vice consul  or  a  notary  public  or
other  person  authorized  to  certify  dishonor by the law of the place
where dishonor occurs. It may be made upon information  satisfactory  to
such person.
(2)  The  protest must identify the instrument and certify either that
due presentment has been made or the reason why it is excused  and  that
the instrument has been dishonored by nonacceptance or nonpayment.
(3)  The  protest  may  also  certify that notice of dishonor has been
given to all parties or to specified parties.
(4) Subject to subsection (5) any necessary protest is due by the time
that notice of dishonor is due.
(5) If, before protest is  due,  an  instrument  has  been  noted  for
protest  by  the officer to make protest, the protest may be made at any
time thereafter as of the date of the noting.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 5 - Presentment, Notice of Dishonor and Protest › 3-510 - Evidence of Dishonor and Notice of Dishonor.

Section 3--510. Evidence of Dishonor and Notice of Dishonor.
The  following  are admissible as evidence and create a presumption of
dishonor and of any notice of dishonor therein shown:
(a) a document regular in form as provided in  the  preceding  section
which purports to be a protest;
(b)  the  purported  stamp  or  writing  of  the drawee, payor bank or
presenting bank on  the  instrument  or  accompanying  it  stating  that
acceptance  or  payment  has  been  refused  for reasons consistent with
dishonor;
(c) any book or record of the drawee, payor bank,  or  any  collecting
bank  kept  in  the  usual course of business which shows dishonor, even
though there is no evidence of who made the entry.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 5 - Presentment, Notice of Dishonor and Protest › 3-511 - Waived or Excused Presentment, Protest or Notice of Dishonor or Delay Therein.

Section 3--511. Waived  or  Excused  Presentment,  Protest  or Notice of
Dishonor or Delay Therein.
(1) Delay in presentment, protest or notice  of  dishonor  is  excused
when  the  party  is  without notice that it is due or when the delay is
caused by circumstances beyond his control and he  exercises  reasonable
diligence after the cause of the delay ceases to operate.
(2)  Presentment  or  notice or protest as the case may be is entirely
excused when
(a) the party to  be  charged  has  waived  it  expressly  or  by
implication either before or after it is due; or
(b) such  party  has  himself  dishonored  the  instrument or has
countermanded payment or otherwise has no reason to expect or
right to require that the instrument be accepted or paid; or
(c) by reasonable diligence the presentment or protest cannot  be
made or the notice given.
(3) Presentment is also entirely excused when
(a) the  maker,  acceptor  or  drawee  of any instrument except a
documentary  draft  is  dead  or  in  insolvency  proceedings
instituted after the issue of the instrument; or
(b) acceptance  or  payment is refused but not for want of proper
presentment.
(4) Where a  draft  has  been  dishonored  by  nonacceptance  a  later
presentment  for  payment  and  any  notice  of dishonor and protest for
nonpayment are excused unless in the meantime the  instrument  has  been
accepted.
(5)  A waiver of protest is also a waiver of presentment and of notice
of dishonor even though protest is not required.
(6) Where a waiver of presentment or notice or protest is embodied  in
the  instrument  itself  it is binding upon all parties; but where it is
written above the signature of an indorser it binds him only.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 6 - Discharge › 3-601 - Discharge of Parties.

Section 3--601. Discharge of Parties.
(1)  The  extent  of  the  discharge of any party from liability on an
instrument is governed by the sections on
(a) payment or satisfaction (Section 3--603); or
(b) tender of payment (Section 3--604); or
(c) cancellation or renunciation (Section 3--605); or
(d) impairment of right of recourse  or  of  collateral  (Section
3--606); or
(e) reacquisition  of  the  instrument  by a prior party (Section
3--208); or
(f) fraudulent and material alteration (Section 3--407); or
(g) certification of a check (Section 3--411); or
(h) acceptance varying a draft (Section 3--412); or
(i) unexcused delay in  presentment  or  notice  of  dishonor  or
protest (Section 3--502).
(2)  Any  party is also discharged from his liability on an instrument
to another party by any other act or agreement  with  such  party  which
would discharge his simple contract for the payment of money.
(3)  The liability of all parties is discharged when any party who has
himself no right of action or recourse on the instrument
(a) reacquires the instrument in his own right; or
(b) is discharged under any provision of this Article, except  as
otherwise  provided  with respect to discharge for impairment
of recourse or of collateral (Section 3--606).
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 6 - Discharge › 3-602 - Effect of Discharge Against Holder in Due Course.

Section 3--602. Effect of Discharge Against Holder in Due Course.
No  discharge  of  any  party  provided  by  this Article is effective
  against a subsequent holder in due course unless he has  notice  thereof
  when he takes the instrument.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 6 - Discharge › 3-603 - Payment or Satisfaction.

Section 3--603. Payment or Satisfaction.
(1)  The  liability  of  any  party is discharged to the extent of his
payment or satisfaction to the  holder  even  though  it  is  made  with
knowledge of a claim of another person to the instrument unless prior to
such payment or satisfaction the person making the claim either supplies
indemnity  deemed adequate by the party seeking the discharge or enjoins
payment or satisfaction by order of a court of competent jurisdiction in
an action in which the adverse claimant and the holder are parties. This
subsection does not, however, result in the discharge of the liability
(a) of a party who in bad faith pays or satisfies  a  holder  who
acquired  the  instrument  by theft or who (unless having the
rights of a holder in due course) holds through  one  who  so
acquired it; or
(b) of  a  party (other than an intermediary bank or a payor bank
which is not a depositary bank) who  pays  or  satisfies  the
holder of an instrument which has been restrictively indorsed
in a manner not consistent with the terms of such restrictive
indorsement.
(2) Payment or satisfaction may be made with the consent of the holder
by  any  person including a stranger to the instrument. Surrender of the
instrument to such a  person  gives  him  the  rights  of  a  transferee
(Section 3--201).
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 6 - Discharge › 3-604 - Tender of Payment.

Section 3--604. Tender of Payment.
(1)  Any party making tender of full payment to a holder when or after
it is due is discharged to the extent of all  subsequent  liability  for
interest, costs and attorney's fees.
(2)  The  holder's  refusal of such tender wholly discharges any party
who has a right of recourse against the party making the tender.
(3) Where the maker or acceptor of  an  instrument  payable  otherwise
than  on  demand  is  able  and  ready  to pay at every place of payment
specified in the instrument when it is due, it is equivalent to tender.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 6 - Discharge › 3-605 - Cancellation and Renunciation.

Section 3--605. Cancellation and Renunciation.
(1)  The  holder  of  an  instrument  may  even  without consideration
discharge any party
(a) in any manner apparent on the face of the instrument  or  the
indorsement, as by intentionally cancelling the instrument or
the  party's  signature  by  destruction or mutilation, or by
striking out the party's signature; or
(b) by renouncing his rights by a writing signed and delivered or
by surrender of the instrument to the party to be discharged.
(2) Neither cancellation nor renunciation  without  surrender  of  the
instrument affects the title thereto.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 6 - Discharge › 3-606 - Impairment of Recourse or of Collateral.

Section 3--606. Impairment of Recourse or of Collateral.
(1)  The  holder  discharges any party to the instrument to the extent
that without such party's consent the holder
(a) without express reservation of rights releases or agrees  not
to sue any person against whom the party has to the knowledge
of  the  holder  a right of recourse or agrees to suspend the
right to  enforce  against  such  person  the  instrument  or
collateral  or  otherwise discharges such person, except that
failure or  delay  in  effecting  any  required  presentment,
protest or notice of dishonor with respect to any such person
does  not discharge any party as to whom presentment, protest
or notice of dishonor is effective or unnecessary; or
(b) unjustifiably impairs any collateral for the instrument given
by or on behalf of the party or any person  against  whom  he
has a right of recourse.
(2)  By  express reservation of rights against a party with a right of
recourse the holder preserves
(a) all his rights against such party as of  the  time  when  the
instrument was originally due; and
(b) the right of the party to pay the instrument as of that time;
and
(c) all rights of such party to recourse against others.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 7 - Advice of International Sight Draft › 3-701 - Letter of Advice of International Sight Draft.

Section 3--701. Letter of Advice of International Sight Draft.
(1)  A  "letter  of  advice" is a drawer's communication to the drawee
that a described draft has been drawn.
(2) Unless otherwise agreed when a bank receives from another  bank  a
letter  of  advice  of  an international sight draft the drawee bank may
immediately debit the drawer's account and stop the running of  interest
pro tanto. Such a debit and any resulting credit to any account covering
outstanding  drafts  leaves  in the drawer full power to stop payment or
otherwise dispose of the amount and creates  no  trust  or  interest  in
favor of the holder.
(3)  Unless otherwise agreed and except where a draft is drawn under a
credit issued by the drawee, the drawee of an international sight  draft
owes  the drawer no duty to pay an unadvised draft but if it does so and
the draft is genuine, may appropriately debit the drawer's account.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 8 - Miscellaneous › 3-801 - Drafts in a Set.

Section 3--801. Drafts in a Set.
(1)  Where  a  draft  is  drawn  in  a  set of parts, each of which is
numbered and expressed to be an order only if no  other  part  has  been
honored, the whole of the parts constitutes one draft but a taker of any
part may become a holder in due course of the draft.
(2)  Any person who negotiates, indorses or accepts a single part of a
draft drawn in a set thereby becomes liable to any holder in due  course
of  that  part  as  if  it  were the whole set, but as between different
holders in due course to whom different parts have been  negotiated  the
holder  whose  title  first  accrues has all rights to the draft and its
proceeds.
(3) As against the drawee the first presented part of a draft drawn in
a set is the part entitled to payment, or if a time draft to  acceptance
and  payment.  Acceptance of any subsequently presented part renders the
drawee liable thereon under subsection  (2).  With  respect  both  to  a
holder  and  to the drawer payment of a subsequently presented part of a
draft payable at sight has  the  same  effect  as  payment  of  a  check
notwithstanding an effective stop order (Section 4--407).
(4)  Except as otherwise provided in this section, where any part of a
draft in a set is discharged by payment or otherwise the whole draft  is
discharged.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 8 - Miscellaneous › 3-802 - Effect of Instrument on Obligation for Which It Is Given.

Section 3--802. Effect  of  Instrument  on  Obligation  for  Which It Is
Given.
(1) Unless otherwise agreed  where  an  instrument  is  taken  for  an
underlying obligation
(a) the  obligation  is pro tanto discharged if a bank is drawer,
maker or acceptor of the instrument and there is no  recourse
on the instrument against the underlying obligor; and
(b) in any other case the obligation is suspended pro tanto until
the instrument is due or if it is payable on demand until its
presentment.  If  the  instrument is dishonored action may be
maintained  on  either  the  instrument  or  the  obligation;
discharge  of  the  underlying obligor on the instrument also
discharges him on the obligation.
(2) The taking in good faith of a check which is  not  postdated  does
not  of  itself  so  extend  the  time  on the original obligation as to
discharge a surety.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 8 - Miscellaneous › 3-803 - Notice to Third Party.

Section 3--803. Notice to Third Party.
Where  a  defendant  is  sued  for breach of an obligation for which a
  third person is answerable over under this Article he may give the third
  person written notice of the litigation, and  the  person  notified  may
  then  give  similar notice to any other person who is answerable over to
  him under this Article. If the notice states that  the  person  notified
  may come in and defend and that if the person notified does not do so he
  will  in any action against him by the person giving the notice be bound
  by any determination of fact common to the two litigations, then  unless
  after  seasonable receipt of the notice the person notified does come in
  and defend he is so bound.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 8 - Miscellaneous › 3-804 - Lost, Destroyed or Stolen Instruments.

Section 3--804. Lost, Destroyed or Stolen Instruments.
The  owner  of  an  instrument  which is lost, whether by destruction,
  theft or otherwise, may maintain an action in his own name  and  recover
  from any party liable thereon upon due proof of his ownership, the facts
  which  prevent his production of the instrument and its terms. The court
  shall require security, in an amount fixed by the court  not  less  than
  twice  the  amount  allegedly unpaid on the instrument, indemnifying the
  defendant, his heirs, personal representatives, successors  and  assigns
  against  loss, including costs and expenses, by reason of further claims
  on the instrument, but this provision does not apply where an action  is
  prosecuted  or  defended  by  the  state  or  by a public officer in its
  behalf.
2023 New York Laws › UCC - Uniform Commercial Code › Article 3 - Commercial Paper › Part 8 - Miscellaneous › 3-805 - Instruments Not Payable to Order or to Bearer.

Section 3--805. Instruments Not Payable to Order or to Bearer.
This  Article  applies  to  any instrument whose terms do not preclude
  transfer and which is otherwise negotiable within this Article but which
  is not payable to order or to bearer, except that there can be no holder
  in due course of such an instrument.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 1 - General Provisions and Definitions › 4-102 - Applicability.

Section 4--102. Applicability.
(1)  To  the extent that items within this Article are also within the
scope of Articles 3 and 8, they are subject to the provisions  of  those
Articles. In the event of conflict the provisions of this Article govern
those  of Article 3 but the provisions of Article 8 govern those of this
Article.
(2) The liability of a bank for action or non-action with  respect  to
any  item  handled  by  it  for  purposes  of  presentment,  payment  or
collection is governed by the  law  of  the  place  where  the  bank  is
located.  In  the  case  of  action  or  non-action by or at a branch or
separate office of a bank, its liability is governed by the law  of  the
place where the branch or separate office is located.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 1 - General Provisions and Definitions › 4-103 - Variation by Agreement; Measure of Damage; Certain Action Constituting Ordinary Care.

Section 4--103. Variation  by  Agreement;  Measure  of  Damages; Certain
Action Constituting Ordinary Care.
(1) The effect of the provisions of this  Article  may  be  varied  by
agreement  except that no agreement can disclaim a bank's responsibility
for its own lack of good faith or failure to exercise ordinary  care  or
can  limit  the  measure  of  damages  for such lack or failure; but the
parties  may  by  agreement  determine  the  standards  by  which   such
responsibility  is  to  be measured if such standards are not manifestly
unreasonable.
(2) Federal Reserve regulations and operating letters, clearing  house
rules, and the like, have the effect of agreements under subsection (1),
whether  or  not  specifically  assented to by all parties interested in
items handled.
(3) Action or non-action approved  by  this  Article  or  pursuant  to
Federal   Reserve  regulations  or  operating  letters  constitutes  the
exercise of ordinary care and, in the absence of  special  instructions,
action  or  non-action consistent with clearing house rules and the like
or with a general banking usage not disapproved by this  Article,  prima
facie constitutes the exercise of ordinary care.
(4)  The  specification  or  approval  of  certain  procedures by this
Article does not constitute disapproval of other procedures which may be
reasonable under the circumstances.
(5) The measure of damages for failure to exercise  ordinary  care  in
handling  an  item  is the amount of the item reduced by an amount which
could not have been realized by the use  of  ordinary  care,  and  where
there  is  bad  faith it includes other damages, if any, suffered by the
party as a proximate consequence.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 1 - General Provisions and Definitions › 4-105 - "Depositary Bank"; "Intermediary Bank"; "Collecting Bank"; "Payor Bank"; "Presenting Bank"; "Remitting Bank".

Section 4--105. "Depositary   Bank";  "Intermediary  Bank";  "Collecting
Bank"; "Payor  Bank";  "Presenting  Bank";  "Remitting
Bank".
In this Article unless the context otherwise requires:
(a)  "Depositary  bank"  means  the  first  bank  to  which an item is
transferred for collection even though it is also the payor bank;
(b) "Payor bank" means a bank by which an item is payable as drawn  or
accepted;
(c) "Intermediary bank" means any bank to which an item is transferred
in course of collection except the depositary or payor bank;
(d)  "Collecting bank" means any bank handling the item for collection
except the payor bank;
(e) "Presenting bank" means any bank presenting an item except a payor
bank;
(f) "Remitting bank" means any payor or  intermediary  bank  remitting
for an item.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 1 - General Provisions and Definitions › 4-106 - Separate Office of a Bank.

Section 4--106. Separate Office of a Bank.
A  branch  or  separate  office  of  a bank is a separate bank for the
  purpose of computing the time within which and determining the place  at
  or  to  which  action  may  be taken or notices or orders shall be given
  under this Article and under Article 3. The receipt  of  any  notice  or
  order  by or the knowledge of one branch or separate office of a bank is
  not actual or constructive notice to or knowledge of any other branch or
  office of the same bank and does not impair the right of another  branch
  or office to be a holder in due course of an item.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 1 - General Provisions and Definitions › 4-107 - Time of Receipt of Items.

Section 4--107. Time of Receipt of Items.
(1)  For the purpose of allowing time to process items, prove balances
and make the necessary entries on its books to  determine  its  position
for  the day, a bank may fix an afternoon hour of two P.M. or later as a
cut-off hour for the handling of money  and  items  and  the  making  of
entries on its books.
(2)  Any  item or deposit of money received on any day after a cut-off
hour so fixed or after the close of the banking day may  be  treated  as
being received at the opening of the next banking day.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 1 - General Provisions and Definitions › 4-108 - Delays.

Section 4--108. Delays.
(1)  Unless  otherwise  instructed,  a collecting bank in a good faith
effort to secure payment may, in the case of specific items and with  or
without  the  approval  of  any person involved, waive, modify or extend
time limits imposed or permitted by this Act for a period not in  excess
of  an additional banking day without discharge of secondary parties and
without liability to its transferor or any prior party.
(2) Delay by a collecting  bank  or  payor  bank  beyond  time  limits
prescribed  or  permitted  by  this Act or by instructions is excused if
caused  by  interruption  of  communication  facilities,  suspension  of
payments   by   another   bank,   war,  emergency  conditions  or  other
circumstances beyond the control of the bank provided it exercises  such
diligence as the circumstances require.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 1 - General Provisions and Definitions › 4-109 - Process of Posting.

Section 4--109. Process of Posting.
The "process of posting" means the usual procedure followed by a payor
bank  in  determining  to  pay  an  item  and  in  recording the payment
including one or more of the following or other steps as  determined  by
the bank:
(a) verification of any signature;
(b) ascertaining that sufficient funds are available;
(c) affixing a "paid" or other stamp;
(d) entering a charge or entry to a customer's account;
(e)  correcting or reversing an entry or erroneous action with respect
to the item.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 2 - Collection of Items: Depositary and Collecting Banks › 4-201 - Presumption and Duration of Agency Status of Collecting Banks and Provisional Status of Credits; Applicability of Article; Item Indorsed "Pay Any Bank

Section 4--201. Presumption  and Duration of Agency Status of Collecting
Banks and Provisional Status of Credits; Applicability
of Article; Item Indorsed "Pay Any Bank".
(1) Unless a contrary intent clearly appears and  prior  to  the  time
that  a  settlement given by a collecting bank for an item is or becomes
final (subsection (3) of Section 4--211 and Sections 4--212 and  4--213)
the  bank  is  an  agent  or  sub-agent of the owner of the item and any
settlement given for the item is  provisional.  This  provision  applies
regardless  of  the  form of indorsement or lack of indorsement and even
though credit given for the item is subject to immediate  withdrawal  as
of right or is in fact withdrawn; but the continuance of ownership of an
item  by  its  owner and any rights of the owner to proceeds of the item
are subject to rights of a collecting bank such as those resulting  from
outstanding  advances  on  the  item and valid rights of setoff. When an
item is handled by  banks  for  purposes  of  presentment,  payment  and
collection,  the  relevant  provisions of this Article apply even though
action of  parties  clearly  establishes  that  a  particular  bank  has
purchased the item and is the owner of it.
(2)  After  an item has been indorsed with the words "pay any bank" or
the like, only a bank may acquire the rights of a holder
(a) until the item has been returned to the  customer  initiating
collection; or
(b) until  the  item  has  been specially indorsed by a bank to a
person who is not a bank.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 2 - Collection of Items: Depositary and Collecting Banks › 4-202 - Responsibility for Collection; When Action Seasonable.

Section 4--202. Responsibility for Collection; When Action Seasonable.
(1) A collecting bank must use ordinary care in
(a) presenting an item or sending it for presentment; and
(b) sending  notice  of  dishonor  or non-payment or returning an
item other than a documentary draft to the bank's  transferor
or  directly  to  the depositary bank under subsection (2) of
Section 4--212 after learning that the item has not been paid
or accepted, as the case may be; and
(c) settling for an item when the bank receives final settlement;
and
(d) making or providing for any necessary protest; and
(e) notifying its transferor of any  loss  or  delay  in  transit
within a reasonable time after discovery thereof.
(2)  A  collecting  bank  taking  proper  action  before  its midnight
deadline  following  receipt  of  an  item,  notice  or   payment   acts
seasonably;  taking proper action within a reasonably longer time may be
seasonable but the bank has the burden of so establishing.
(3) Subject to subsection (1) (a),  a  bank  is  not  liable  for  the
insolvency,  neglect,  misconduct, mistake or default of another bank or
person or for loss or destruction of  an  item  in  transit  or  in  the
possession of others.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 2 - Collection of Items: Depositary and Collecting Banks › 4-203 - Effect of Instructions.

Section 4--203. Effect of Instructions.
Subject  to  the  provisions  of  Article  3  concerning conversion of
  instruments (Section 3--419) and the provisions of both  Article  3  and
  this  Article  concerning  restrictive  indorsements  only  a collecting
  bank's transferor  can  give  instructions  which  affect  the  bank  or
  constitute  notice  to  it  and a collecting bank is not liable to prior
  parties for any  action  taken  pursuant  to  such  instructions  or  in
  accordance with any agreement with its transferor.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 2 - Collection of Items: Depositary and Collecting Banks › 4-204 - Methods of Sending and Presenting; Sending Direct to Payor Bank.

Section 4--204. Methods  of  Sending  and  Presenting; Sending Direct to
Payor Bank.
(1) A collecting bank must send  items  by  reasonably  prompt  method
taking  into  consideration any relevant instructions, the nature of the
item, the number of such items on  hand,  and  the  cost  of  collection
involved  and  the method generally used by it or others to present such
items.
(2) A collecting bank may send
(a) any item direct to the payor bank;
(b) any  item  to  any  non-bank  payor  if  authorized  by   its
transferor; and
(c) any item other than documentary drafts to any non-bank payor,
if  authorized  by  Federal  Reserve  regulation or operating
letter, clearing house rule or the like.
(3) Presentment may be made by a presenting bank at a place where  the
payor bank has requested that presentment be made.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 2 - Collection of Items: Depositary and Collecting Banks › 4-205 - Supplying Missing Indorsement; No Notice From Prior Indorsement.

Section 4--205. Supplying  Missing  Indorsement;  No  Notice  From Prior
Indorsement.
(1) A depositary bank which has  taken  an  item  for  collection  may
supply  any  indorsement  of  the  customer  which is necessary to title
unless the item contains the words "payee's indorsement required" or the
like. In the absence of such a requirement a  statement  placed  on  the
item by the depositary bank to the effect that the item was deposited by
a  customer  or  credited  to his account is effective as the customer's
indorsement.
(2) An intermediary bank, or payor bank  which  is  not  a  depositary
bank,  is  neither  given notice nor otherwise affected by a restrictive
indorsement of any person except the bank's immediate transferor.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 2 - Collection of Items: Depositary and Collecting Banks › 4-208 - Security Interest of Collecting Bank in Items, Accompanying Documents and Proceeds.

Section 4--208. Security   Interest   of   Collecting   Bank  in  Items,
Accompanying Documents and Proceeds.
(1) A bank has a security interest in an  item  and  any  accompanying
documents or the proceeds of either
(a) in  case  of an item deposited in an account to the extent to
which credit  given  for  the  item  has  been  withdrawn  or
applied;
(b) in  case  of  an item for which it has given credit available
for withdrawal as of right, to the extent of the credit given
whether or not the credit is drawn upon and  whether  or  not
there is a right of charge-back; or
(c) if it makes an advance on or against the item.
(2) When credit which has been given for several items received at one
time  or  pursuant to a single agreement is withdrawn or applied in part
the security interest remains  upon  all  the  items,  any  accompanying
documents  or  the  proceeds of either. For the purpose of this section,
credits first given are first withdrawn.
(3) Receipt by a collecting bank of a final settlement for an item  is
a  realization  on  its  security  interest  in  the  item, accompanying
documents and proceeds. To the extent and so long as the bank  does  not
receive  final settlement for the item or give up possession of the item
or accompanying  documents  for  purposes  other  than  collection,  the
security  interest continues and is subject to the provisions of Article
9 except that
(a) no security agreement  is  necessary  to  make  the  security
interest enforceable ( Section 9--203 (b)(3)(A)); and
(b) no filing is required to perfect the security interest; and
(c) the security interest has priority over conflicting perfected
security  interests  in  the  item, accompanying documents or
proceeds.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 2 - Collection of Items: Depositary and Collecting Banks › 4-209 - When Bank Gives Value for Purposes of Holder in Due Course.

Section 4--209. When  Bank  Gives  Value  for  Purposes of Holder in Due
Course.
For purposes of determining its status as a holder in due course,  the
  bank has given value to the extent that it has a security interest in an
  item  provided that the bank otherwise complies with the requirements of
  Section 3--302 on what constitutes a holder in due course.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 2 - Collection of Items: Depositary and Collecting Banks › 4-210 - Presentment by Notice of Item Not Payable By, Through or at a Bank; Liability of Secondary Parties.

Section 4--210. Presentment by Notice of Item Not Payable by, Through or
at a Bank; Liability of Secondary Parties.
(1) Unless otherwise instructed, a collecting bank may present an item
not  payable  by, through or at a bank by sending to the party to accept
or pay a written notice that the bank holds the item for  acceptance  or
payment. The notice must be sent in time to be received on or before the
day  when  presentment  is due and the bank must meet any requirement of
the party to accept or pay under Section 3--505  by  the  close  of  the
bank's next banking day after it knows of the requirement.
(2)  Where presentment is made by notice and neither honor nor request
for compliance with a requirement under Section 3--505  is  received  by
the close of business on the day after maturity or in the case of demand
items by the close of business on the third banking day after notice was
sent,  the  presenting  bank may treat the item as dishonored and charge
any secondary party by sending him notice of the facts.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 2 - Collection of Items: Depositary and Collecting Banks › 4-211 - Media of Remittance; Provisional and Final Settlement in Remittance Cases.

Section 4--211. Media of Remittance; Provisional and Final Settlement in
Remittance Cases.
(1) A collecting bank may take in settlement of an item
(a) a  check of the remitting bank or of another bank on any bank
except the remitting bank; or
(b) a  cashier's  check  or  similar  primary  obligation  of   a
remitting  bank  which  is  a  member  of or clears through a
member of the same clearing house or group as the  collecting
bank; or
(c) appropriate  authority  to charge an account of the remitting
bank or of another bank with the collecting bank; or
(d) if the item is drawn upon or payable by a person other than a
bank, a cashier's check, certified check or other bank  check
or obligation.
(2)  If  before  its  midnight  deadline  the collecting bank properly
dishonors a remittance check or authorization to  charge  on  itself  or
presents  or  forwards  for  collection a remittance instrument of or on
another bank which is of a kind approved by subsection (1)  or  has  not
been  authorized  by  it,  the  collecting  bank  is not liable to prior
parties in the event of  the  dishonor  of  such  check,  instrument  or
authorization.
(3)  A  settlement  for an item by means of a remittance instrument or
authorization to charge is or becomes a final settlement as to both  the
person making and the person receiving the settlement
(a) if the remittance instrument or authorization to charge is of
a  kind approved by subsection (1) or has not been authorized
by the person receiving the settlement and in either case the
person receiving the settlement acts  seasonably  before  its
midnight deadline in presenting, forwarding for collection or
paying  the  instrument  or  authorization,--at  the time the
remittance instrument or authorization is finally paid by the
payor by which it is payable;
(b) if  the  person  receiving  the  settlement  has   authorized
remittance  by  a  non-bank  check  or  obligation  or  by  a
cashier's check or similar primary obligation of or  a  check
upon the payor or other remitting bank which is not of a kind
approved  by  subsection (1) (b),--at the time of the receipt
of such remittance check or obligation; or
(c) if in a case not covered by sub-paragraphs  (a)  or  (b)  the
person  receiving the settlement fails to seasonably present,
forward for collection, pay or return a remittance instrument
or  authorization  to  it  to  charge  before  its   midnight
deadline,--at such midnight deadline.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 2 - Collection of Items: Depositary and Collecting Banks › 4-212 - Right of Charge-Back or Refund.

Section 4--212. Right of Charge-Back or Refund.
(1)  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  items 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. 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  Section  4--211  and
subsections (2) and (3) of Section 4--213).
(2)  Within the time and manner prescribed by this section and Section
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 for the item,
it must reimburse the bank drawing the draft and any provisional credits
for the item between banks shall become and remain final.
(3) A depositary bank which is also  the  payor  may  charge-back  the
amount  of  an  item  to  its  customer's  account  or  obtain refund in
accordance with the section governing return of an item  received  by  a
payor bank for credit on its books (Section 4--301).
(4) The right to charge-back is not affected by
(a) prior use of the credit given for the item; or
(b) failure by any bank to exercise ordinary care with respect to
the item but any bank so failing remains liable.
(5)  A  failure  to  charge-back or claim refund does not affect other
rights of the bank against the customer or any other party.
(6) If credit is given in dollars as the equivalent of the value of an
item payable in a foreign currency the dollar amount of any  charge-back
or  refund shall be calculated on the basis of the buying sight rate for
the foreign currency prevailing on the day when the person  entitled  to
the  charge-back  or  refund  learns that it will not receive payment in
ordinary course.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 2 - Collection of Items: Depositary and Collecting Banks › 4-213 - Final Payment of Item by Payor Bank; When Provisional Debits and Credits Become Final; When Certain Credits Become Available for Withdrawal.

Section 4--213. Final  Payment  of  Item by Payor Bank; When Provisional
Debits and Credits Become Final; When Certain  Credits
Become Available for Withdrawal.
(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 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  Section  4--211,  subsection  (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
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  opening  of  the  bank's  next banking day following receipt of the
deposit.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 2 - Collection of Items: Depositary and Collecting Banks › 4-214 - Insolvency and Preference.

Section 4--214. Insolvency and Preference.
(1) Any item in or coming into the possession of a payor or collecting
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 payments, the
suspension does not prevent or interfere with  the  settlement  becoming
final  if  such  finality occurs automatically upon the lapse of certain
time or the happening of  certain  events  (subsection  (3)  of  Section
4--211, subsections (1) (d), (2) and (3) of Section 4--213).
(4)  If  a collecting bank receives from subsequent parties settlement
for an item which settlement is or becomes final and  suspends  payments
without  making  a settlement for the item with its customer which is or
becomes final, the owner of the item has a preferred claim against  such
collecting bank.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 3 - Collection of Items: Payor Banks › 4-301 - Deferred Posting; Recovery of Payment by Return of Items; Time of Dishonor.

Section 4--301. Deferred  Posting;  Recovery  of  Payment  by  Return of
Items; Time of Dishonor.
(1) Where an authorized settlement for a demand  item  (other  than  a
documentary draft) received by a payor bank otherwise than for immediate
payment  over  the  counter has been made before midnight of the banking
day of receipt the payor bank may revoke the settlement and recover  any
payment  if  before it has made final payment (subsection (1) of Section
4--213) and before its midnight deadline it
(a) returns the item; or
(b) sends written notice of dishonor or nonpayment if the item is
held for protest or is otherwise unavailable for return.
(2) If a demand item is received by a payor bank  for  credit  on  its
books  it may return such item or send notice of dishonor and may revoke
any credit  given  or  recover  the  amount  thereof  withdrawn  by  its
customer,  if  it acts within the time limit and in the manner specified
in the preceding subsection.
(3) Unless previous notice of  dishonor  has  been  sent  an  item  is
dishonored  at  the time when for purposes of dishonor it is returned or
notice sent in accordance with this section.
(4) An item is returned:
(a) as to an item received through a clearing house, when  it  is
delivered to the presenting or last collecting bank or to the
clearing house or is sent or delivered in accordance with its
rules; or
(b) in  all  other  cases,  when  it  is sent or delivered to the
bank's  customer   or   transferor   or   pursuant   to   his
instructions.
2023 New York Laws › UCC - Uniform Commercial Code › Article 4 - Bank Deposits and Collections › Part 3 - Collection of Items: Payor Banks › 4-302 - Payor Bank's Responsibility for Late Return of Item.

Section 4--302. Payor Bank's Responsibility for Late Return of Item.
In  the  absence  of  a  valid defense such as breach of a presentment
  warranty (subsection (1) of Section 4--207), settlement effected or  the
  like,  if  an item is presented on and received by a payor bank the bank
  is accountable for the amount of
(a) a demand item other than a documentary draft whether properly
payable or not if the bank, in any case where it is not  also
the  depositary bank, retains the item beyond midnight of the
banking day of receipt without settling for it or, regardless
of whether it is also the depositary bank, does  not  pay  or
return  the  item  or send notice of dishonor until after its
midnight deadline; or
(b) any other  properly  payable  item  unless  within  the  time
allowed  for  acceptance  or  payment  of  that item the bank
either  accepts  or  pays  the  item  or   returns   it   and
accompanying documents.