Tex. Bus. & Com. Code Section 4.213
Medium and Time of Settlement by Bank


(a)

With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearing-house rules, and the like or by agreement. In the absence of such a prescription:

(1)

the medium of settlement is cash or credit to an account in a Federal Reserve bank of or specified by the person to receive settlement; and

(2)

the time of settlement is:

(A)

with respect to tender of settlement by cash, a cashier’s check, or a teller’s check, when the cash or check is sent or delivered;

(B)

with respect to tender of settlement by credit to an account in a Federal Reserve bank, when the credit is made;

(C)

with respect to tender of settlement by a credit or debit to an account in a bank, when the credit or debit is made or, in the case of tender of settlement by authority to charge an account, when the authority is sent or delivered; or

(D)

with respect to tender of settlement by a funds transfer, when payment is made pursuant to Section 4A.406 (Payment by Originator to Beneficiary; Discharge of Underlying Obligation)(a) to the person receiving settlement.

(b)

If the tender of settlement is not by a medium authorized by Subsection (a) or the time of settlement is not fixed by Subsection (a), a settlement does not occur until the tender of settlement is accepted by the person receiving settlement.

(c)

If settlement for an item is made by cashier’s check or teller’s check and the person receiving settlement, before its midnight deadline:

(1)

presents or forwards the check for collection, settlement is final when the check is finally paid; or

(2)

fails to present or forward the check for collection, settlement is final at the midnight deadline of the person receiving settlement.

(d)

If settlement for an item is made by giving authority to charge the account of the bank giving settlement in the bank receiving settlement, settlement is final when the charge is made by the bank receiving settlement if there are funds available in the account for the amount of the item.
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967. Amended by Acts 1983, 68th Leg., p. 1531, ch. 290, Sec. 4, eff. Aug. 29, 1983. Renumbered from Sec. 4.211 and amended by Acts 1995, 74th Leg., ch. 921, Sec. 4, eff. Jan. 1, 1996.

Source: Section 4.213 — Medium and Time of Settlement by Bank, https://statutes.­capitol.­texas.­gov/Docs/BC/htm/BC.­4.­htm#4.­213 (accessed Apr. 20, 2024).

4.101
Short Title
4.102
Applicability
4.103
Variation by Agreement
4.104
Definitions and Index of Definitions
4.106
Payable Through or Payable at Bank
4.107
Separate Office of a Bank
4.108
Time of Receipt of Items
4.109
Delays
4.110
Electronic Presentment
4.111
Statute of Limitations
4.112
Payment of Check at Par
4.202
Responsibility for Collection or Return
4.203
Effect of Instructions
4.204
Methods of Sending and Presenting
4.205
Depository Bank Holder of Unindorsed Item
4.206
Transfer Between Banks
4.207
Transfer Warranties
4.208
Presentment Warranties
4.209
Encoding and Retention Warranties
4.210
Security Interest of Collecting Bank in Items, Accompanying Documents and Proceeds
4.211
When Bank Gives Value for Purposes of Holder in Due Course
4.212
Presentment by Notice of Item Not Payable By, Through or at a Bank
4.213
Medium and Time of Settlement by Bank
4.214
Right of Charge-back or Refund
4.215
Final Payment of Item by Payor Bank
4.216
Insolvency and Preference
4.301
Deferred Posting
4.302
Payor Bank’s Responsibility for Late Return of Item
4.303
When Items Subject to Notice, Stop-payment Order, Legal Process, or Setoff
4.401
When Bank May Charge Customer’s Account
4.402
Bank’s Liability to Customer for Wrongful Dishonor
4.403
Customer’s Right to Stop Payment
4.404
Bank Not Obligated to Pay Check More than Six Months Old
4.405
Death or Incompetence of Customer
4.406
Customer’s Duty to Discover and Report Unauthorized Signature or Alteration
4.407
Payor Bank’s Right to Subrogation on Improper Payment
4.501
Handling of Documentary Drafts
4.503
Responsibility of Presenting Bank for Documents and Goods
4.504
Privilege of Presenting Bank to Deal with Goods

Accessed:
Apr. 20, 2024

§ 4.213’s source at texas​.gov