New Jersey § 12a:4-301

§ 12a:4-301.

a. 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 (1) returns the item; or (2) sends written notice of dishonor or nonpayment if the item is unavailable for

return. b. 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amount thereof withdrawn by its customer, if it acts within the time limit and in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 a. of this section. c. Unless previous notice of dishonor has been sent, an item is dishonored at the

time when for purposes of dishonor it is returned or a notice is sent in accordance

with this section. d. An item is returned: (1) as to an item presented 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 clearing-house rules; or (2) in all other cases, when it is sent or delivered to the bank's customer or transferor

or pursuant to instructions.