(a) Duty of receiver to return unpaid checks. A check or returned
check in, or coming into, the possession of a paying bank, collecting
bank, depositary bank, or returning bank that suspends payment, and
which is not paid, shall be returned by the receiver, trustee, or
agent in charge of the closed bank to the bank or customer that transferred
the check to the closed bank.
(b) Claims against banks for checks not returned
by receiver. If a check or returned check is not returned by
the receiver, trustee, or agent in charge of the closed bank under
paragraph (a) of this section, a bank shall have claims with respect
to the check or returned check as follows:
(1) If the paying bank has finally paid
the check, or if a depositary bank is obligated to pay the returned
check, and suspends payment without making a settlement for the check
or returned check with the prior bank that is or becomes final, the
prior bank has a claim against the paying bank or the depositary bank.
(2) If a collecting bank,
paying bank, or returning bank receives settlement from a subsequent
bank for a check or returned check, which settlement is or becomes
final, and suspends payments without making a settlement for the check
with the prior bank, which is or becomes final, the prior bank has
a claim against the collecting bank or returning bank.
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(c) Preferred claim against
presenting bank for breach of warranty. If a paying bank settles
with a presenting bank for one or more checks, and if the presenting
bank breaches a warranty specified in section 229.34(c)(1) or (3)
with respect to those checks and suspends payments before satisfying
the paying bank’s warranty claim, the paying bank has a preferred
claim against the presenting bank for the amount of the warranty claim.
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(d) Finality of settlement. If a paying bank or depositary bank gives, or a collecting bank,
paying bank, or returning bank gives or receives, a settlement for
a check or returned check and thereafter suspends payment, the suspension
does not prevent or interfere with the settlement becoming final if
such finality occurs automatically upon the lapse of a certain time
or the happening of certain events.
