Florida Statute 674.301 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 674
UNIFORM COMMERCIAL CODE: BANK DEPOSITS AND COLLECTIONS

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674.301 Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank.—

(1) 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:

(a) Returns the item; or

(b) Sends written notice of dishonor or nonpayment if the item is unavailable for return.

(2) 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books, it may return the item or send notice of dishonor and may revoke any credit given or recover the amount thereof withdrawn by its customer, if it acts within the time limit and in the manner specified in subsection (1).

(3) 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.

(4) An item is returned:

(a) As to an item presented through a clearinghouse, when it is delivered to the presenting or last collecting bank or to the clearinghouse or is sent or delivered in accordance with clearinghouse rules; or

(b) In all other cases, when it is sent or delivered to the bank’s customer or transferor or pursuant to instructions.

History.—s. 1, ch. 65-254; s. 35, ch. 92-82.

Note.—s. 4-301, U.C.C.; supersedes s. 676.55.

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Amendments to 674.301

Annotations, Discussions, Cases:

Cases Citing Statute 674.301

Total Results: 2 | Sort by: Relevance | Newest First

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Gathercrest Ltd. v. First Am. Bank & Trust, 649 F. Supp. 106 (M.D. Fla. 1985).

Cited 9 times | Published | District Court, M.D. Florida | 1985 U.S. Dist. LEXIS 18147

...[t]o either accept[] or pay[] the item or return it and accompanying documents." The Court must next determine whether MSB's failure to either accept or return the second bill for over three months was a failure to act within the time allowed. Section 674.302(2) does not define "time allowed," and the cross reference to § 674.301 in the official comment is of little assistance since § 674.301 does not specify the time allowed for payment of documentary drafts by payor banks. See Union Bank of Benton, Arkansas v. First National Bank of Mt. Pleasant, Texas, 621 F.2d at 795 n. 14. Section 674.301(1) does not apply in this case because it pertains to demand items other than a documentary draft, and § 674.301(2) does not apply because it applies to demand items where the payor bank is also the depositary bank. Fla.Stat. § 674.301, Comment 2....

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First Union Nat. Bank v. First Fla. Bank, NA, 616 So. 2d 1168 (Fla. 2d DCA 1993).

Cited 3 times | Published | Florida 2nd District Court of Appeal | 20 U.C.C. Rep. Serv. 2d (West) 1017, 1993 Fla. App. LEXIS 4230, 1993 WL 114778

...We conclude that the trial court erred by adopting a rule of reasonableness. In this case, the parties do not argue that the outcome is controlled by either federal reserve regulations or by the local clearinghouse rules. See § 674.103, Fla. Stat. *1170 (1985). Thus, we are called upon to apply sections 674.301 and 674.302, Florida Statutes (1985), in context with other portions of the Uniform Commercial Code....

...It had notified Security Pacific of its intention to dishonor the check, but Security Pacific had not notified Union Bank. These efforts were insufficient to negate the payor bank's responsibility for the check. The payor bank must bear the responsibility of its error in misrouting this item. Section 674.301(4)(a) provides that an item received through a clearinghouse is returned "when it is delivered to the presenting or last collecting bank or to the clearinghouse or is sent or delivered in accordance with its rules." First Florida argu...

...Clark, The Law of Bank Deposits, Collections and Credit Cards para. 5.02[1] (3d ed. 1990). Union Bank is also the "depositary bank" and the "collecting bank" under the Uniform Commercial Code. See § 674.105, Fla. Stat. (1985). We describe Union Bank as the presenting bank for the purposes of this opinion. See § 674.301, Fla....

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