§ 26-1-4-303 — When items subject to notice, stop-payment order, legal process, or setoff; order in which items may be charged or certified

Indiana § 26-1-4-303

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 4: Bank Deposits and Collections

Text

(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 IC 26-1-4-302 dealing with the payor bank's responsibility
for late return of items.
(5) With respect to checks, a cutoff hour not 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 not 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), items may be accepted, paid, certified,
or charged to the indicated account of its customer in any order.
Formerly: Acts 1963, c.317, s.4-303. As amended by
P.L.152-1986, SEC.224; P.L.222-1993, SEC.35.