A. With respect to settlement by a bank, the medium and time of settlement may be prescribed by federal reserve regulations or circulars, clearing-house rules and the like or agreement. In the absence of such prescription:

1. 1. The medium of settlement is cash or credit to an account in a federal reserve bank of or specified by the person to receive settlement; and

2. 2. The time of settlement is:

   1. (a) With respect to tender of settlement by cash, a cashier's check or a teller's check, when the cash or check is sent or delivered;
   2. (b) With respect to tender of settlement by credit in an account in a federal reserve bank, when the credit is made;
   3. (c) With respect to tender of settlement by a credit or debit to an account in a bank, when the credit or debit is made or, in the case of tender of settlement by authority to charge an account, when the authority is sent or delivered; or
   4. (d) With respect to tender of settlement by a funds transfer, when payment is made pursuant to section 47-4A406, subsection A to the person receiving settlement.

C. If settlement for an item is made by cashier's check or teller's check and the person receiving settlement, before its midnight deadline:

1. 1. Presents or forwards the check for collection, settlement is final when the check is finally paid; or
2. 2. Fails to present or forward the check for collection, settlement is final at the midnight deadline of the person receiving settlement.