Montana Code 30-4-211. Medium and time of settlement by bank
30-4-211. Medium and time of settlement by bank. (1) With respect to settlement by a bank, the medium and time of settlement may be prescribed by federal reserve regulations or circulars, clearinghouse rules, and the like or by agreement. In the absence of such prescription:
Terms Used In Montana Code 30-4-211
- account: means any deposit or credit account with a bank and includes a demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit;
(b)"afternoon" means the period of a day between noon and midnight;
(c)"banking day" means the part of a day on which a bank is open to the public for carrying on substantially all of its banking functions;
(d)"clearinghouse" means an association of banks or other payors regularly clearing items;
(e)"customer" means a person having an account with a bank or for whom a bank has agreed to collect items and includes a bank maintaining an account at another bank;
(f)"documentary draft" means a draft to be presented for acceptance or payment if specified documents, certificated securities (30-8-112) or instructions for uncertificated securities (30-8-112), or other certificates, statements, or the like are to be received by the drawee or other payor before acceptance or payment of the draft;
(g)"draft" means a draft as defined in 30-3-104 or an item, other than an instrument, that is an order;
(h)"item" means an instrument or a promise or an order to pay money handled by a bank for collection or payment. See Montana Code 30-4-104
- bank: means any person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company;
(2)"depositary bank" means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter;
(3)"payor bank" means a bank that is the drawee of a draft;
(4)"intermediary bank" means a bank to which an item is transferred in course of collection except the depositary or payor bank;
(5)"collecting bank" means a bank handling an item for collection except the payor bank;
(6)"presenting bank" means a bank presenting an item except a payor bank. See Montana Code 30-4-105
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
(a)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
(b)the time of settlement is:
(i)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;
(ii)with respect to tender of settlement by credit in an account in a federal reserve bank, when the credit is made;
(iii)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
(iv)with respect to tender of settlement by a funds transfer, when payment is made pursuant to 30-4A-406(1) to the person receiving settlement.
(2)If the tender of settlement is not by a medium authorized by subsection (1) or the time of settlement is not fixed by subsection (1), no settlement occurs until the tender of settlement is accepted by the person receiving settlement.
(3)If settlement for an item is made by cashier’s check or teller’s check and the person receiving settlement, before its midnight deadline:
(a)presents or forwards the check for collection, settlement is final when the check is finally paid; or
(b)fails to present or forward the check for collection, settlement is final at the midnight deadline of the person receiving settlement.
(4)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.