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Can you summarize ALCA 7-4-303?
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 Code of Alabama’s Commercial Code, specifically addresses the collection of items by payor banks. It states 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 mentions that items may be accepted, paid, certified, or charged to the customer’s account in any order, subject to certain conditions. No specific exemptions or penalties are mentioned in this document.
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
Alabama