Section 4-213(1) spells out that it will convert a payor bank\'s provisional set

Question

Section 4-213(1) spells out that it will convert a payor bank's provisional settlement into final settlement when it:

a) does not pay the items in cash.

b) settles without reserving a right to revoke.

c). settles while having a right under statute, clearinghouse rule, or agreement with the customer.

d) has not yet posted the item to the appropriate account.

e) makes provisional settlement and provokes the settlement in the time and manner permitted by the statute, clearinghouse rule, or agreement.

Explanation / Answer

b) settles without reserving a right to revoke.

According to this section

When it (a) pays the item in cash; (b) settles without reserving a right to revoke and without having a right under statute, clearinghouse rule, or agreement with the customer; finishes posting the item to the appropriate account; or (d) makes provisional settlement and fails to revoke the settlement in the time and manner permitted by statute, clearinghouse rule, or agreement.

so the answer is

b) settles without reserving a right to revoke.

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