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Can you summarize 13 PACS 4303?
COLLECTION OF ITEMS: PAYOR BANKS > When items subject to notice, stop-payment order, legal process or set-off; order in which items may be charged or certified.
Short Summary
This legal document governs the collection of items by payor banks. It specifies that any knowledge, notice, stop-payment order, legal process, or set-off received or exercised by a payor bank does not terminate, suspend, or modify the bank’s right or duty to pay an item or charge the customer’s account for the item. The document outlines the circumstances under which the bank’s actions are not affected, such as when the bank accepts or certifies the item, pays the item in cash, settles for the item without the right to revoke the settlement, becomes accountable for the amount of the item, or reaches the cutoff hour for checks. It also states that items may be accepted, paid, certified, or charged to the customer’s account in any order, subject to the provisions mentioned. This document is part of the Pennsylvania Compiled Statutes under the Commercial Code section related to bank deposits and collections.
Whom does it apply to?
Payor banks
What does it govern?
Collection of items: Payor Banks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Pennsylvania