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Can you summarize 42a CTGS Article 4, Section 303?
Bank Deposits and Collections - Secs. 42a-4-101 to 42a-4-504 > 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, found within the General Statutes of Connecticut under the Uniform Commercial Code - Articles 1 to 10, specifically Bank Deposits and Collections, addresses the timing and order of actions related to items subject to notice, stop-payment order, legal process, or set-off. It states that if a payor bank receives knowledge, notice, stop-payment order, or legal process, or exercises set-off after certain events have occurred, such as accepting or certifying the item, paying the item in cash, settling for the item, becoming accountable for the amount of the item, or reaching a cutoff hour for checks, it cannot terminate, suspend, or modify its right or duty to pay the item or charge its customer’s account. The document also mentions that items may be accepted, paid, certified, or charged to the customer’s account in any order. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Payor banks and their customers
What does it govern?
Items subject to notice, stop-payment order, legal process or set-off. 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
Connecticut