subject to final payment

subject to final payment
A familiar condition in the banking business. Where checks received by a bank from a depositor are credited to his account "subject to final payment," which provision is sometimes printed in the depositors' pass books as applying to out-of-town checks, the meaning of the provision is that if such a check is not paid upon its presentation to the drawee bank, the amount of it will be charged back to the depositor's account. See Douglas v Federal Reserve Bank, 271 US 489, 493, 70 L Ed 1051, 1053, 46 S Ct 554.

Ballentine's law dictionary. . 1998.

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