§ 41-04-31 — (4-303) When items subject to notice, stop order, legal process, or setoff - Order in which items may be charged or certified

Order in which items may be charged or certified.
1. Any knowledge, notice, or stop 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 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, clearinghouse rule, or agreement.
d. The bank becomes accountable for the amount of the item under section
41-04-30 dealing with the payor bank's responsibility for late return of items.
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.