§ 554.4303 — When items subject to notice, stop-payment order, legal process, or setoff — order in which items may be charged or certified

Iowa § 554.4303

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

order in which items may be charged or certified.
1. Any knowledge, notice, or stop-payment order received by, legal process served upon,
orsetoffexercisedbyapayorbankcomestoolatetoterminate, suspend, ormodifythebank’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:
a. the bank accepts or certifies the item;

b. the bank pays the item in cash;
c. the bank settles for the item without having a right to revoke the settlement under
statute, clearing-house rule, or agreement;
d. the bank becomes accountable for the amount of the item under section 554.4302
dealing with the payor bank’s responsibility for late return of items; or
e. with respect to checks, a cutoff hour no earlier than one 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.
2. Subject to subsection 1 items may be accepted, paid, certified, or charged to the
indicated account of its customer in any order.

Legislative History

[C31, 35, §9266-d1; C39, §9266.1; C46, 50, 54, 58, 62, §528.62; C66, 71, 73, 75, 77, 79, 81, §554.4303]