N.Y. Uniform Commercial Code § 4-301 (2026)

Section 4--301. Deferred Posting; Recovery of Payment by Return of
                  Items; Time of Dishonor.
  (1) Where an authorized settlement for a demand item (other than a
documentary draft) received by a payor bank otherwise than for immediate
payment over the counter has been made before midnight of the banking
day of receipt the payor bank may revoke the settlement and recover any
payment if before it has made final payment (subsection (1) of Section
4--213) and before its midnight deadline it
       (a) returns the item; or
       (b) sends written notice of dishonor or nonpayment if the item is
           held for protest or is otherwise unavailable for return.
  (2) If a demand item is received by a payor bank for credit on its
books it may return such 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any credit given or recover the amount thereof withdrawn by its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 the preceding subsection.
  (3) 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.
  (4) An item is returned:
       (a) as to an item received 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 its
           rules; or
       (b) in all other cases, when it is sent or delivered to the
           bank's customer or transferor or pursuant to his
           instructions.