- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 4. Bank Deposits and Collections
- Section 216. Insolvency and Preference.
previous: Section 215
. Final Payment of Item By Payor Bank; When Provisional Debits and Credits Become Final; When Certain Credits Become Available For Withdrawal.
next: Section 301
. Deferred Posting; Recovery of Payment By Return of Items; Time of Dishonor; Return of Items By Payor Bank.
AS 45.04.216. Insolvency and Preference.
- (a) If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not
been finally paid, the item shall be returned by the receiver, trustee, or agent in charge of the closed bank to the
presenting bank or the closed bank's customer.
- (b) If a payor bank finally pays an item and suspends payments without making a settlement for the item with its customer
or the presenting bank, which settlement is or becomes final, the owner of the item has a preferred claim against the
- (c) If a payor bank gives or a collecting bank gives or receives a provisional settlement for an item and later suspends
payments, the suspension does not prevent or interfere with the settlement's becoming final if the finality occurs
automatically upon the lapse of certain time or the happening of certain events.
- (d) If a collecting bank receives from subsequent parties settlement for an item, which settlement is or becomes final and
the bank suspends payments without making a settlement for the item with its customer, which settlement is or becomes
final, the owner of the item has a preferred claim against the collecting bank.
Article 03. COLLECTION OF ITEMS: PAYOR BANKS
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