Nevada § 104.4301 - Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank

§ 104.4301. Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank

1. If a payor bank settles for a demand item other than a documentary draft presented

otherwise than for immediate payment over the counter before midnight of the banking

day of receipt the payor bank may revoke the settlement and recover the settlement

if, before it has made final payment and before its midnight deadline, it: (a) Returns the item; (b) Returns an image of the item, if the party to which the return is made has entered

into an agreement to accept an image as a return of the item and the image is returned

in accordance with that agreement; or (c) Sends a record providing notice of dishonor or nonpayment if the item is unavailable

for return. 2. If a demand item is received by a payor bank for credit on its books it may return

the 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amount thereof withdrawn by its customer, if it acts within the time limit and in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 subsection 1. 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 presented through a clearinghouse, when it is delivered to the presenting

or last collecting bank or to the clearinghouse or is sent or delivered in accordance

with clearinghouse rules; or (b) In all other cases, when it is sent or delivered to the bank's customer or transferor

or pursuant to his or her instructions.