1. (a) If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank, or otherwise to receive settlement for the item which is or becomes final, the bank may revoke the settlement given by it, charge back the amount of any credit given for the item to its customer's account, or obtain refund from its customer, whether or not it is able to return the item, if by its midnight deadline or within a longer reasonable time after it learns the facts it returns the item or sends notification of the facts. If the return or notice is delayed beyond the bank's midnight deadline or a longer reasonable time after it learns the facts, the bank may revoke the settlement, charge back the credit, or obtain refund from its customer, but it is liable for any loss resulting from the delay. These rights to revoke, charge back, and obtain refund terminate if and when a settlement for the item received by the bank is or becomes final.

2. (b) A

   collecting bank returns an item when it is sent or delivered to the bank's customer or transferor or pursuant to its instructions.

3. (c) A

   depositary bank that is also the payor may charge back the amount of an item to its customer's account or obtain refund in accordance with the section governing return of an item received by a payor bank for credit on its books (Section 12A-4-301 of this title).

4. (d) The

   right to charge back is not affected by:

5. (1) Previous use of a credit given for the

   item; or
   (2) Failure by any bank to exercise ordinary care with respect to the item, but a bank so failing remains liable.

6. (e) A failure to charge back or claim refund does not affect other

   rights of the bank against the customer or any other party.

7. (f) If credit is given in dollars as the equivalent of the

   value of an item payable in foreign money, the dollar amount of any charge-back or refund must be calculated on the basis of the bank-offered spot rate for the foreign money prevailing on the day when the person entitled to the charge-back or refund learns that it will not receive payment in ordinary course.

   Oklahoma Code Comment

   Under pre-revision subsection

   4-212(6), Oklahoma had changed the uniform Act and provided that a charge-back should be measured by the rate in effect on the day credit was given. This rule had little to recommend it, either to the bank or the customer, and subsection (f) of this Section returns to the uniform rule of using a current date.

Laws 1961, SB 36, p. 128, §