Okla. Stat. tit. 12A § 4-110

Current through Laws 2024, c. 453.

Section 4-110 - Electronic Presentment

(a) "Agreement for electronic presentment" means an agreement, clearing-house rule, or Federal Reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item ("presentment notice") rather than delivery of the item itself. The agreement may provide for procedures governing retention, presentment, payment, dishonor, and other matters concerning items subject to the agreement.

(b) Presentment of an item pursuant to an agreement for presentment is made when the presentment notice is received.

(c) If presentment is made by presentment notice, a reference to "item" or "check" in this article means the presentment notice unless the context otherwise indicates.

Okla. Stat. tit. 12A, § 4-110

Added by Laws 1991, SB 25, c. 117, § 103, eff. 1/1/1992.

Oklahoma Code Comment

This new Section was added as pan of the 1992 UCC revisions. To effectuate electronic presentment where a check is truncated (held before it reaches the payor bank), this Section provides for an agreement of the panics describing the relationship. Banks should not accept electronic presentment unless the rights and responsibilities are clearly defined and the liabilities clearly allocated. Such an agreement between the payor bank and its presenting bank, which might exist bilaterally or through a clearinghouse arrangement, should address the obligation of the presenting bank to retain and furnish copies of the items presented. The presenting bank must agree to retain the items, or legible copies of the items, for 7 years to satisfy the requirements of sub section 4-406(b) .

An electronic presentment notice is considered to be an "item" under Article 4. The payor husk will be unable to examine the item if imaging is not used. This would not necessarily constitute a breach of the bank's duty of "ordinary care" (sub section 3-103(a)(7) ) . However, there is no warranty that the drawer's signature is genuine. See UCC §§ 4-207, 4-208 and 4-209. As a result, if a payor bank pays on the electronic presentment of an item the original of which contained a forged drawer's signature, then payment of the item would not be proper. See UCC § 4-401. If this depleted the account so that subsequent items were dishonored, that dishonor would be wrongful and the payor bank would be liable under Section 4-402 , even though it had no opportunity to examine the original offending item. This liability could be allocated to the presenting bank by agreement, at least to the extent that had the item been presented, the payor bank's procedures could have detected the forgery (or alteration).