CHAPTER 54

AN ACT TO AMEND CHAPTER 9 OF TITLE 5 OF THE DELAWARE CODE RELATING TO REGULATIONS GOVERNING BUSINESS OF BANKS AND TRUST COMPANIES.

Be it enacted by the General Assembly of the State Delaware:

Section 1. Title 5 of the Delaware Code, is amended by striking Section 925 and inserting in lieu thereof the following:

§ 925. Collection, payment and dishonor of demand items; revocation of credit

In any case in which a bank receives, other than for immediate payment over the counter, a demand item payable by, at or through the bank and gives credit therefor before midnight of the day of receipt, the bank may have until midnight of its next banking day (as the same is defined in Section 291 of Title 6) after receipt within which to dishonor or refuse payment of such item. Any credit so given, together with all related entries on the books of the receiving bank, may be revoked by returning the item, or if the item is held for protest or at the time is lost or is not in the possession of the bank, by giving written notice of dishonor, non-payment or revocation; provided that such item or notice is dispatched in the mails or by other expeditious means not later than midnight of the bank's next banking day after the item was received. For the purpose of determining when notice of dishonor must be given or protest made under the law relative to negotiable instruments, an item duly presented, credit for which is revoked as authorized by this Section, shall be deemed dishonored on the day the item or notice is dispatched. A bank, revoking credit pursuant to the authority of this Section, is entitled to the refund of, or credit for, the amount of the item.

For the purposes of this section: (1) an item received by a bank on a day other than its banking day, or received on a banking day after its regular banking hours or during afternoon or evening periods when it has opened, reopened or remained open for limited functions, shall be deemed to have been received at the opening of its next banking day; (2) the term "credit" includes payment, remittance, advice of credit, or authorization to charge and, in cases where the item is received for deposit as well as for payment, also includes the making of appropriate entries to the receiving bank's general ledger without regard to whether the item is posted to individual customers' ledgers; and (3) each branch or office of a bank shall be deemed a separate bank.

Approved May 11, 1965.