§12A-4-301.

§12A-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   revoke any credit given or recover the amount thereof withdrawn by its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.