§ 26-1-4-405 — Death or incompetence of customer

Indiana § 26-1-4-405

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

Text

(a) A payor or collecting bank's authority
to accept, pay, or collect an item or to account for proceeds of its
collection, if otherwise effective, is not rendered ineffective by the
mental incompetence of a customer of either bank existing at the time
the item is issued or its collection is undertaken if the bank does not
know of an adjudication of incompetence. Neither death nor mental
incompetence of a customer revokes the authority to accept, pay,
collect, or account until the bank knows of the fact of death or of an
adjudication of incompetence and has reasonable opportunity to act on
it.
(b) Even with knowledge, a bank may for ten (10) days after the
date of death pay or certify checks drawn on or before that date unless
ordered to stop payment by a person claiming an interest in the
account.
Formerly: Acts 1963, c.317, s.4-405. As amended by
P.L.33-1989, SEC.25; P.L.222-1993, SEC.39.