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Can you summarize 4303.?
Collection of Items: Payor Banks > When Items Subject to Notice, Stop-Order, Legal Process or Setoff; Order in Which Items May Be Charged or Certified.
Short Summary
This legal document, found in the Guam Code Annotated under the Uniform Commercial Code, specifically in the section on Collection of Items: Payor Banks, governs the actions and responsibilities of payor banks regarding items subject to notice, stop-order, legal process, or setoff. It establishes that any knowledge, notice, stop 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 have already occurred. 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, completing the process of posting the item to the indicated account, becoming accountable for the amount of the item, or the item being deposited or received for deposit for credit in a customer’s account. The document also states that items may be accepted, paid, certified, or charged to the indicated account in any order convenient to the bank, and the bank is not obligated to determine the time of day an item is received. There are no specific exemptions or penalties mentioned in this document.
Whom does it apply to?
Payor banks
What does it govern?
Items subject to notice, stop-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
Guam