Ask Reggi Your Question Now
Can you summarize 55-4-303 NMSA?
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 New Mexico Statutes Annotated 1978, specifically falls under the Uniform Commercial Code and pertains to the collection of items by payor banks. It establishes that any knowledge, notice, stop-payment order, or legal process received by a 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 the bank has already accepted or certified the item, paid it in cash, settled for the item without the right to revoke the settlement, become accountable for the amount of the item, or if a cutoff hour has passed. The document also states that items may be accepted, paid, certified, or charged to the customer’s account in any order. Overall, this document provides guidelines for the order of payment and the impact of various legal events on the payor bank’s responsibilities.
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
New Mexico