Vermont § 216 - § 4—216.

§ 216. § 4—216.

• Insolvency and preference (a) If an item is in or comes into the possession of a payor or collecting bank that suspends
  payment and the item has not been finally paid, the item must be returned by the receiver,
  trustee, or agent in charge of the closed bank to the presenting bank or the closed
  bank’s customer. (b) 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. (c) 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’s becoming final if the finality occurs automatically upon the
  lapse of certain time or the happening of certain events. (d) If a collecting bank receives from subsequent parties settlement for an item, which
  settlement is or becomes final and the bank suspends payments without making a settlement
  for the item with its customer which settlement is or becomes final, the owner of
  the item has a preferred claim against the collecting bank. (Added 1993, No. 158 (Adj. Sess.), § 13, eff. Jan. 1, 1995.)