Vermont § 301 - § 4—301.

§ 301. § 4—301.

• Deferred posting; recovery of payment by return of items; time of dishonor; return
  of items by payor bank (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  amount thereof withdrawn by its customer, if it acts within the time limit and in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 notice 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. (Added 1993, No. 158 (Adj. Sess.), § 13, eff. Jan. 1, 1995.)