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Can you summarize 12A OKST 4-303?
Collection of Items - Payor Banks > When Items Subject to Notice, Stop-Payment Order, Legal Process, or Setoff; Order in Which Items May be Charged or Certified.
Short Summary
This legal document, part of the Oklahoma Statutes Uniform Commercial Code, specifically addresses the actions and responsibilities of payor banks regarding items subject to notice, stop-payment orders, legal process, or setoff. It states that any knowledge, notice, stop-payment order, or legal process received by the payor bank comes too late to terminate, suspend, or modify the bank’s right or duty to pay an item or charge its customer’s account if certain conditions are met. These conditions include the bank accepting or certifying the item, paying the item in cash, settling for the item without the right to revoke the settlement, becoming accountable for the amount of the item, or reaching a cutoff hour for checks. The document also mentions that items may be accepted, paid, certified, or charged to the customer’s account in any order. Overall, this document provides guidelines for the actions and timelines related to items and payments within the banking system.
Whom does it apply to?
Payor banks
What does it govern?
Items subject to notice, stop-payment order, legal process, or setoff; order in which items may be charged or certified
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Oklahoma