The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 4-301)
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§ 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amount thereof withdrawn by its customer, if it acts within the time limit and in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.)