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Can you summarize 9A VTST 4-303?
BANK DEPOSITS AND COLLECTIONS > 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 Vermont Statutes’ Uniform Commercial Code section on BANK DEPOSITS AND COLLECTIONS, governs the treatment of items subject to notice, stop-payment order, legal process, or setoff, as well as the order in which these items may be charged or certified. It specifies 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 the 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, except as specified in subsection (a) of the document. 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 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
Vermont