(4-215) Final payment of item by payor bank - When provisional debits and credits become final - When certain credits become available for withdrawal
N.D. Cent. Code § 41-04-27
in effect41-04-27. (4-215) Final payment of item by payor bank - When provisional debits and
credits become final - When certain credits become available for withdrawal.
1. An item is finally paid by a payor bank when the bank has done any of the following,
whichever happens first:
a. Paid the item in cash.
b. Settled for the item without having a right to revoke the settlement under statute,
clearinghouse rule, or agreement.
c. Made a provisional settlement for the item and failed to revoke the settlement in
the time and manner permitted by statute, clearinghouse rule, or agreement.
2. If provisional settlement for an item does not become final, the item is not finally paid.
3. If provisional settlement for an item between the presenting and payor banks is made
through a clearinghouse or by debits or credits in an account between them, then to
the extent that provisional debits or credits for the item are entered in accounts
between the presenting and payor banks or between the presenting and successive
prior collecting banks seriatim, they become final upon final payment of the items by
the payor bank.
4. If a collecting bank receives a settlement for an item which is or becomes final, the
bank is accountable to its customer for the amount of the item and any provisional
credit given for the item in an account with its customer becomes final.
5. Subject to applicable law stating a time for availability of funds and any right of the
bank to apply the credit to an obligation of the customer, credit given by a bank for an
item in a customer's account becomes available for withdrawal as of right:
a. If the bank has received a provisional settlement for the item, when such
settlement becomes final and the bank has had a reasonable time to receive
return of the item and has not received the item within that time.
b. If the bank is both the depositary bank and the payor bank and the item is finally
paid, at the opening of the bank's second banking day following receipt of the
item.
6. Subject to applicable law stating a time for availability of funds and any right of a bank
to apply a deposit to an obligation of the depositor, a deposit of money becomes
available for withdrawal as of right at the opening of the bank's next banking day after
receipt of the deposit.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c04.pdf#nameddest=41-04-27Fetched: 10/16/2026