(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 similar rules and documents, or agreement. In the absence of prescription in that manner, both of the following apply:

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.

2. (2) The time of settlement is one of the following:

   1. (a) With respect to tender of settlement by cash, a cashier's check, or 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 in account, when the authority is sent or delivered;
   4. (d) With respect to tender of settlement by a funds transfer, when payment is made pursuant to division (A) of section 1304.34 of the Revised Code to the person receiving settlement.

(C) If settlement for an item is made by cashier's check or teller's check, both of the following apply:

1. (1) If the person receiving settlement, before its midnight deadline, presents or forwards the check for collection, settlement is final when the check is finally paid.
2. (2) If the person receiving settlement, before its midnight deadline, fails to present or forward the check for collection, settlement is final at the midnight deadline of the person receiving settlement.