New York § 4-405 Death or Incompetence of Customer

New York Statutes

§ 4-405 — Death or Incompetence of Customer

New York § 4-405

Law UCCUniform Commercial Code

Part 4Relationship Between Payor Bank and Its Customer

Art. 4Bank Deposits and Collections

This text of New York § 4-405 (Death or Incompetence of Customer) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.Y. Uniform Commercial Code § 4-405 (2026).

Text

Section 4--405. Death or Incompetence of Customer.\n  (1) A payor or collecting bank's authority to accept, pay or collect\nan item or to account for proceeds of its collection if otherwise\neffective is not rendered ineffective by incompetence of a customer of\neither bank existing at the time the item is issued or its collection is\nundertaken if the bank does not know of an adjudication of incompetence.\nNeither death nor incompetence of a customer revokes such authority to\naccept, pay, collect or account until the bank knows of the fact of\ndeath or of an adjudication of incompetence and has reasonable\nopportunity to act on it.\n  (2) Even with knowledge a bank may for ten days after the date of\ndeath pay or certify checks drawn on or prior to that date unless\nordered to stop payme

Free access — add to your briefcase to read the full text and ask questions with AI

Section 4--405. Death or Incompetence of Customer.\n (1) A payor or collecting bank's authority to accept, pay or collect\nan item or to account for proceeds of its collection if otherwise\neffective is not rendered ineffective by incompetence of a customer of\neither bank existing at the time the item is issued or its collection is\nundertaken if the bank does not know of an adjudication of incompetence.\nNeither death nor incompetence of a customer revokes such authority to\naccept, pay, collect or account until the bank knows of the fact of\ndeath or of an adjudication of incompetence and has reasonable\nopportunity to act on it.\n (2) Even with knowledge a bank may for ten days after the date of\ndeath pay or certify checks drawn on or prior to that date unless\nordered to stop payment by a person claiming an interest in the account.\n