§12A-4-214.

§12A-4-214.
   
                      RIGHT OF CHARGE-BACK OR REFUND;
                                      
                LIABILITY OF COLLECTING BANK; RETURN OF ITEM
                                      
   (a) If a collecting bank has made provisional settlement with its
   customer for an item and fails by reason of dishonor, suspension of
   payments by a bank, or otherwise to receive settlement for the item
   which is or becomes final, the bank may revoke the settlement given by
   it, charge back the amount of any credit given for the item to its
   customer's account, or obtain refund from its customer, whether or not
   it is able to return the item, if by its midnight deadline or within a
   longer reasonable time after it learns the facts it returns the item
   or sends notification of the facts. If the return or notice is delayed
   beyond the bank's midnight deadline or a longer reasonable time after
   it learns the facts, the bank may revoke the settlement, charge back
   the credit, or obtain refund from its customer, but it is liable for
   any loss resulting from the delay. These rights to revoke, charge
   back, and obtain refund terminate if and when a settlement for the
   item received by the bank is or becomes final.
   
   (b) A collecting bank returns an item when it is sent or delivered to
   the bank's customer or transferor or pursuant to its instructions.
   
   (c) A depositary bank that is also the payor may charge back the
   amount of an item to its customer's account or obtain refund in
   accordance with the section governing return of an item received by a
   payor bank for credit on its books (Section 4-301 of this title).
   
   (d) The right to charge back is not affected by:
   
   (1) Previous use of a credit given for the item; or
   
   (2) Failure by any bank to exercise ordinary care with respect to the
   item, but a bank so failing remains liable.
   
   (e) A failure to charge back or claim refund does not affect other
   rights of the bank against the customer or any other party.
   
   (f) If credit is given in dollars as the equivalent of the value of an
   item payable in foreign money, the dollar amount of any charge-back or
   refund must be calculated on the basis of the bank-offered spot rate
   for the foreign money prevailing on the day when the person entitled
   to the charge-back or refund learns that it will not receive payment
   in ordinary course.