Section 4-215 - Final Payment of Item by Payor Bank; When Provisional Debits and Credits Become Final; When Certain Credits Become Available for Withdrawal(a) An item is finally paid by a payor bank when the bank has first done any of the following: (1) Paid the item in cash;(2) Settled for the item without having a right to revoke the settlement under statute, clearing-house rule, or agreement; or(3) Made a provisional settlement for the item and failed to revoke the settlement in the time and manner permitted by statute, clearing-house rule, or agreement.(b) If provisional settlement for an item does not become final, the item is not finally paid.(c) If provisional settlement for an item between the presenting and payor banks is made through a clearing-house or by debits or credits in an account between them, then to the extent that provisional debits or credits for the item are entered in accounts between the presenting and payor banks or between the presenting and successive prior collecting banks seriatim, they become final upon final payment of the items by the payor bank.(d) If a collecting bank receives a settlement for an item which is or becomes final, the bank is accountable to its customer for the amount of the item and any provisional credit given for the item in an account with its customer becomes final.(e) Subject to (i) applicable law stating a time for availability of funds and (ii) any right of the bank to apply the credit to an obligation of the customer, credit given by a bank for an item in a customer's account becomes available for withdrawal as of right:(1) If the bank has received a provisional settlement for the item, when the settlement becomes final and the bank has had a reasonable time to receive return of the item and the item has not been received within that time; or(2) If the bank is both the depositary bank and the payor bank, and the item is finally paid, at the opening of the bank's second banking day following receipt of the item.(f) Subject to applicable law stating a time for availability of funds and any right of a bank to apply a deposit to an obligation of the depositor, a deposit of money becomes available for withdrawal as of right at the opening of the bank's next banking day after receipt of the deposit.Okla. Stat. tit. 12A, § 4-215
Added by Laws 1991, SB 25, c. 117, § 119, eff. 1/1/1992.Oklahoma Code Comment
This Section was pre-revision Section 4-213 . Reg. CC requires that all settlements in the forward check collection process be final when made. 12 C.F.R. §229.36(d) . Compare, before Reg. CC, Pracht v. Oklahoma State Bank, 592 P.2d 976 (Okla. 1979). However, this does not mean the payor bank may not collect from the bank to which a dishonored check is resumed pursuant to 12 C.F.R. § 229.30 . Nor is the payor's duty to return the item, or send written notice of dishonor or nonpayment if the item is unavailable (such as in truncation), to be confused with the duty under 12 C.F.R. § 229.33 to send notice of nonpayment in certain cases.
Note that subsection (a) drops completion of the process of posting (which was never defined because Oklahoma did not adopt pre-revision Section 4-109 , which defined it) as a point of payment and as a cut-off point for legal process and stop payment orders under Section 4-303 . This makes it important to consider the adoption of a cut-off hour under sub section 4-303(a)(5) . A bank should be slow to waive any cut-off it may set to favor a good customer whose stop order is late, as such conduct may raise a question of good faith. However, given that good faith is not a basis for action independent of contract or a duty under Section 1-203 (see Rodgers v. Tecumseh Bank, 756 P.2d 1223 (Okla. 1988); Frontier Fed Sav. & Loan Ass'n v. Commercial Bank, N.A., 806 P.2d 1140 (Okla. Ct.App. 1990)), and the item has not been "paid" (for UCC purposes), the matter would seem to be left to the bank's discretion.