(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. (i) 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. (ii) with respect to tender of settlement by credit in an account in a Federal Reserve Bank, when the credit is made;
   3. (iii) 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. (iv) with respect to tender of settlement by a funds transfer, when payment is made pursuant to Section 36-4A-406(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.