KANSAS OFFICE of
  REVISOR of STATUTES

  

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84-4-108. Time of receipt of items. (a) For the purpose of allowing time to process items, prove balances, and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of two p.m. or later as a cutoff hour for the handling of money and items and the making of entries on its books.

(b) An item or deposit of money received on any day after a cutoff hour so fixed or after the close of the banking day may be treated as being received at the opening of the next banking day.

History: L. 1965, ch. 564, § 207; L. 1991, ch. 296, § 78; February 1, 1992.

KANSAS COMMENT, 1996

This section is identical to the 1995 Official Text and is substantially the same as the former 84-4-107. It is derived from and substantially similar to the text of the former 84-3-401. The amendments are stylistic and are not meant to change the substantive law. Historical case and statutory references can be obtained from the 1965 and 1983 bound volume 7 of the Kansas Statutes Annotated.

This section is similar to, but broader than, former K.S.A. 9-1211 (deferred posting statute), in that it is applicable to all deposits, and not limited to the payment situation; it also permits an early cut-off hour, a practice followed by many banks in larger cities and towns. The section authorizes a bank to fix a time of 2:00 p.m. or later as a cut-off hour beyond which the receipt of items will be deemed to have occurred at the opening of the following banking day. This leeway gives the drawee bank extra time to process and prove items and make necessary bookkeeping entries. It also covers cases in which a bank is open for limited purposes for a half-day on Saturday or holidays. If an item is received at 3:00 p.m. Monday on a drawee bank with a 2:00 p.m. cut-off hour, the midnight deadline in which to pay or dishonor the item is expanded to Wednesday.

Revisor's Note:

In 1991 former section 84-4-108 was transferred to 84-4-109 as a conforming amendment in the revision of article 3 of the code and the number reassigned to former section 84-4-107.


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