§12A-4-303. When Items Subject to Notice, Stop-Payment Order, Legal
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/ok/title-12a-uniform-commercial-code/12a-4-303·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Process, or Setoff; Order in Which Items May be Charged or Certified.
WHEN ITEMS SUBJECT TO NOTICE, STOP-PAYMENT ORDER,
LEGAL PROCESS, OR SETOFF; ORDER IN WHICH ITEMS
MAY BE CHARGED OR CERTIFIED
(a)Any knowledge, notice, or stop-payment order received by, legal process served upon, or setoff exercised by a payor bank comes too late to terminate, suspend, or modify the bank's right or duty to pay an item or to charge its customer's account for the item if the knowledge, notice, stop-payment order, or legal process is received or served and a reasonable time for the bank to act thereon expires or the setoff is exercised after the earliest of the following:
(1)The bank accepts or certifies the item;
(2)The bank pays the item in cash;
(3)The bank settles for the item without having a right
to revoke the settlement under statute,
clearing-house rule, or agreement;
(4)The bank becomes accountable for the amount of the
item under Section 4-302 of this title dealing with
the payor bank's responsibility for late return of
items; or
(5)With respect to checks, a cutoff hour no earlier than
one
(1)hour after the opening of the next banking day
after the banking day on which the bank received the
check and no later than the close of that next banking
day or, if no cutoff hour is fixed, the close of the
next banking day after the banking day on which the
bank received the check.
(b)Subject to subsection
(a)of this section, items may be accepted, paid, certified, or charged to the indicated account of its customer in any order. Laws 1961, p. 129, § 4-303; Laws 1991, c. 117, § 123, eff. Jan. 1, 1992.