UNIFORM COMMERCIAL CODE
Act 174 of 1962
440.4302 Payor bank; accountability upon presentment and receipt of item; defenses.
Sec. 4302.
(1) If an item is presented on and received by a payor bank the bank is accountable for the amount of the following:
(a) A demand item other than a documentary draft whether properly payable or not if the bank, in any case where it is not also the depositary bank, retains the item beyond midnight of the banking day of receipt without settling for it or, regardless of whether it is also the depositary bank, does not pay or return the item or send notice of dishonor until after its midnight deadline.
(b) Any other properly payable item unless within the time allowed for acceptance or payment of that item the bank either accepts or pays the item or returns it and accompanying documents.
(2) The liability of a payor bank to pay an item pursuant to subsection (1) is subject to defenses based on breach of a presentment warranty (section 4208) or proof that the person seeking enforcement of the liability presented or transferred the item for the purpose of defrauding the payor bank.
History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993
Notes of Decisions
Check Reporting Servs., Inc v. Michigan Nat'l Bank-Lansing, 478 N.W.2d 893 (Mich. Ct. App. 1991).
“We do not address crs’ argument that mnb failed to return the drafts by its midnight deadline and, thus, is liable for wrongful dishonor under MCL 440.4302(a); MSA 19.4302(a), because this was neither the basis for its claim of wrongful dishonor in its complaint nor the reason…”
Van Senus Auto Parts, Inc. v. Michigan Nat'l Bank, 323 N.W.2d 391 (Mich. Ct. App. 1982).
· cites it 5× “Specifically, plaintiff claims that defendant bank is accountable to plaintiff in the amount of all of the 16 checks because of defendant’s failure to meet its statutorily prescribed deadlines for settlement and return of the checks, MCL 440.4302(a); MSA 19.4302(a), and that…”
Seaway Cmty. Bank v. Progressive Cas. Ins., 531 F. App'x 648 (6th Cir. 2013).
· cites it 2× “See Mich. Comp. Laws Ann. § 440.4302 (1). Under the midnight deadline rule, if the payor bank receives a check and does nothing by midnight on the following banking day, then the bank must pay the check.”
Mut. Sav. & Loan v. Nat'l Bank of Detroit, 462 N.W.2d 797 (Mich. Ct. App. 1990).
“[MCL 440.4302; MSA 19.4302.] The midnight deadline is midnight on the next banking day following the banking day on which the payor bank receives the item.”
Hedglin v. Cmty. Bank (In re A & C Chevrolet-Olds, Inc.), 3 B.R. 396 (E.D. Mich. 1980).
“§ 440.4302 makes a payor bank accountable for the amount of a demand item where it retains the item beyond midnight of the banking day of receipt without settling for it or, regardless of whether it is also the depositing bank, does not pay or return the item or send notice of…”
— Mich. Comp. Laws § 440.4302(a) — 2 cases
Check Reporting Servs., Inc v. Michigan Nat'l Bank-Lansing, 478 N.W.2d 893 (Mich. Ct. App. 1991).
“We do not address crs’ argument that mnb failed to return the drafts by its midnight deadline and, thus, is liable for wrongful dishonor under MCL 440.4302(a); MSA 19.4302(a), because this was neither the basis for its claim of wrongful dishonor in its complaint nor the reason…”
Van Senus Auto Parts, Inc. v. Michigan Nat'l Bank, 323 N.W.2d 391 (Mich. Ct. App. 1982).
“Specifically, plaintiff claims that defendant bank is accountable to plaintiff in the amount of all of the 16 checks because of defendant’s failure to meet its statutorily prescribed deadlines for settlement and return of the checks, MCL 440.4302(a); MSA 19.4302(a), and that…”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.